My Xmas Wish List
By
Vendor X
http://www.ccaps.net
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Versão
em português
Everything a
localization vendor could ask for as a gift
Dear Santa,
So far this year I have been a very,
very good single language vendor as I have managed
to survive to the dramatic pricing pressures and budget
cuts affecting us, small- and medium-sized localization
vendors, without losing any branches of our tree,
although making absolutely no profit. For this reason,
I have a special request for you this year. But let
me tell you a story first...
Once upon a time, in a localization
industry far, far away, there were clients and vendors
that worked together in a very close relationship.
This kind of approach, often referred to as a “partnership,”
was based on strong mutual trust and respect. Long-term
commitment was the keyword for this successful partnership,
which also suggested a commitment in terms of time,
staff, and money. Clients and vendors both believed
that relationships based on the above criteria were
highly advantageous for all parties involved, and
that the benefits greatly outweighed the effort involved
in setting up the partnership and making it work.
Clients used to support language vendors
in their business growth. On the other hand, language
vendors tried to do their best to help clients successfully
deliver their software localization projects. Clients
often financed the growth of vendors in terms of technology
and infrastructure since they could see a rapid return
on that investment, which immediately translated into
direct profits. This alliance was extremely important
for all of us, as it created the foundation for the
modern localization industry.
Clients would send delegations to
meet their vendors with certain regularity, and vendors
were often asked to visit client premises. On such
occasions, vendors had the opportunity to personally
meet the client staff involved in the localization
process and build strong human contact. There was
also a place for discussing past, present and future
projects, as well as methods for streamlining and
improving processes. When meetings were not possible,
regular conference calls were set up over the year
to exchange relevant information on business strategies,
tool development, best practices, quality procedures
and related topics. The feedback that resulted from
these discussions was of utmost importance for both
parties as it was seen as a point of growth. Communication
and personal approach were key factors for success
in those good old days!
At that time, the partnership between
clients and vendors had a major impact on the industry’s
growth. Vendors were often asked to participate in
the development of product presentations and help
prepare localization projects. Clients organized training
sessions for their partners on a number of topics
covering the products to be released, localization
processes, quality procedures, etc. One could even
meet client trainers who would fly overseas for 2-week
training sessions at the vendor premises or vice versa.
The development and usage of localization
tools also played a major role during the discussions
between both parties, and suggestions for improvement
were greatly appreciated. While clients often provided
the necessary tools and support for a specific project,
vendors were eager to learn how to use these tools
for later implementation in their workflows.
In such a scenario, the client-vendor
relationship was rarely based on a simple rate/word
matrix. Clients were focused on vendor availability
to handle large volumes all year around, aiming at
higher productivity rates. The number of languages
offered, infrastructure, security and concern with
confidential information were value-added services
the vendor could provide. Not to mention project management,
which also had a significant weight on the client’s
perception. They wanted tailored projects that met
their expectations in terms of schedule and they were
able to monitor, assess and review these projects
at any time. Therefore, close contact with the localization
team from start to finish was paramount.
In those days, the price-quality-time
management triad was duly applied to all projects.
Both clients and vendors were well aware that one
could not expect high quality within a tight timeframe
and under heavy budget constraints. Likewise, matching
competitive pricing with an outstanding level of quality
was not easy. The balance between these three elements
was key and deserved careful consideration so that
vendors could successfully complete the assigned localization
projects.
Then something changed in our industry.
Pricing became the most valued factor in the decision-making
process and the value-added services offered by the
localization providers were no longer of interest
to clients. Meanwhile, the latter have found new sources
of labor by outsourcing the work to low-cost centers,
such as China and India. Profit margins have fallen
dramatically. In-country language tasks remain the
only point of interest for clients, yet compensation
for high-quality services tends to be even less common.
Volume discount, project discount, task discount,
revenue discount – the number and kinds of discounts
requested keep proliferating.
Some of the previously fundamental
activities, such as qualified project management,
have become such minor tasks that they are now often
included in the increasingly lower price/word rate.
Despite innovations in technology, communication is
kept to a minimum and personal contact has been completely
lost. Today, small- and medium-sized localization
vendors must face obsessive price pressure while they
are requested to deliver more with less in their attempts
to survival.
Dear Santa, I am about 40 years old, but more than
ever, I believe in your power and capacity to make
dreams come true. This year I have a special wish
list, which I hope you could help me with. I have
three requests for this state of madness in which
we have found ourselves. Please feel free to pick
the one you like best:
A simple request: Could you please bring us back those
good old days?
A slightly more complicated request:
Could you be so kind as to do your best and protect
the small- and medium-sized language vendors from
the perils of extinction?
A controversial request: Is there
any chance that you could investigate whether the
current situation is the result of an actual worldwide
economic stagnation or simply the fact that our industry
took the wrong direction after the wave of consolidations,
mergers and acquisitions? If that is the case, be
nice and try to convince our colleagues that the dramatic
results of such actions are not only harmful for all
of us, but could reach the point of no return.
Any help on this matter would be highly
appreciated. Next year, I promise to behave even better
than I did this year.
Merry Christmas!
Vendor X preferred not to reveal
his identity. He runs a localization company and on
Christmas Eve, he will sit by his window waiting for
reindeers to cross the Italian sky. This article was kindly granted by Gruppo L10N
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