My Xmas Wish List

By Vendor X

http://www.ccaps.net

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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!

This article was kindly granted by Gruppo L10N

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