In-HousevsOutsourcedLeveragingthebestofbothworlds

Márcia FervienzaMarch2017

Agenda

ü Howthemarketisorganizedtoday

ü AbriefhistoryoftheoutsourcingmodelandtheemergenceofLSPs

ü Differencesbetweensourcingmodels

ü Anotheralternative

ü Brazilianü LifeCoachandPsychologistü CertifiedinStrategicManagementü BasedinAtlanta,GAü 10+yearsofLocalizationexperienceü Specializedinleadingmulticultural

teamstoelevatebrandperceptionandsupportcompanygrowththroughLocalization

ü Focusonplanning,strategyandqualityassurance

ü Expertinproductivity,engagementandpeoplemanagement

www.linkedin.com/in/marciafervienza

Alittlebitaboutme

HowtheMarketisOrganizedToday

Marketoverview

Client-side

MLV

SLV

Toolcompanies

Freelances

Currentsourcingmodels

In-houseteam

Mandatoryusebyinternaldivisions

Servingthecompanyonly

Servingothercompaniesas

well

Optionalusebyinternaldivisions

Servingthecompanyonly

Servingothercompaniesas

well

Thein-housemodel

Currentsourcingmodels

LSP(MLV,SLV,Freelancer)

Partialoutsourcing

Client(internalmanagement)

Fulloutsourcing

Theoutsourcingmodel

ABriefHistoryoftheOutsourcingModelandtheEmergenceofLSPs

OutsourcingModelAbriefhistoryoftheoutsourcingmodelandtheemergenceofLSPs

1980sLargerplayersmovetheirinternallocalizationteamstolesscostlyEuropeancountries.

Irelandbecomesalocalizationhub.INK,thefirstcompanytoofferoutsourcedlocalizationservices,isborn.

1970sBeginningofcomputertechnologies.

Theconceptofoutsourcingingeneralisrevived.Chinaiscalledtheworld’snumberonefactory.

Untilthe1970sThein-housemodelwaspredominantinthemarket.

OutsourcingModelAbriefhistoryoftheoutsourcingmodelandtheemergenceofLSPs

2000sMovefromTMtoGMS.

Y2Kscarebringsanotherboomintechnologydevelopment.HighSpeedInternetbecomeswidelyavailable.2003seesthebeginningoftheBroadbandAge.

Thedevelopmentinhigh-techdatastoragefacilitatesremotework.Newviewtowardslocalizationandtranslation.

1990sGlobalization+techboom=hugelocalizationexpansion.

Companiesmassivelyswitchtooutsourcing.ManyLSPsareborn.LargerMLVsoutsourcetheircoretranslationservicestoSLVs.Trados,bornin1984,establishesitselfastheindustryleaderinTMtechnology.

Companiesstartconsolidating.Theemergenceofdifferenttoolsandsourcefileformatsrequirestranslatorstobesemi-engineers.

OutsourcingModelAbriefhistoryoftheoutsourcingmodelandtheemergenceofLSPs

Renewedfocusoncontentlocalization

Growingimportanceofopenstandards(TMX

andXLIFF)

Translatorsarebacktobeingtranslators

Increasedfocusoncoretranslationskillsanddomainexpertise

Focusonprogramming&publishingenvironments(XML,Javaand.NET).

TODAY

Differencesbetweensourcingmodels

ChoosingyoursourcingmodelThingstoconsiderbeforemakingadecision

ü Businessstrategy

ü Sizeofthecompany

ü Volumeofwork

ü Distributionoftheworkduringtheyear

ü Officespace

ü AnnualbudgetforLocalization

ü Thenatureofyourcontent

ü Numberoflanguagessupportedonanongoingbasis

ü Numberoflanguages(ifany)supportedonanad-hocbasis

In-HouseModelAdvantages

• Accommodateslastminuterequests

• Fixedcostthatiseasiertobudget

• Inter-departmentalcollaboration

• ProductandCompanyspecialists

• Qualitycontrol(productandpeople)

• Boostsmorale

Disadvantages

• Higherinvestmentinresources

• Requiresdedicatedstaff

• Noflexibility

• Highinitialsetupcost

• Costofhiringandtrainingthestaff

• Costoframp-uptime

Beforedecidingtogoin-house,askyourself:ü Howsoondoyouhavetostart?ü Whatareyourmidtolongtermneeds?ü Whatisthetalentavailabilityinyourarea?

OutsourcingModelAdvantages

• Payasyougo

• Reducedpersonnelcosts

• Accesstotalentallovertheworld

• Focusoncorebusiness

• Notrainingorsoftwareupgradecosts

• Expertisewithoutlongtermcommitment

Disadvantages

• Qualitycontrol

• Littletonoprocesscontrol

• Costoffixingsubstandardwork

• Responsiveness

• Requiresmoreplanning

• Disconnectbetweendepartments

Beforedecidingtooutsource,askyourself:ü Howwillyoucontrolquality?ü Howmuchwillitcosttofixsubstandardwork?ü Howpredictableareyourschedules?

In-HouseorOutsourcing?CompetitiveorComplementary?

Ifwewant…

ü Thebesttalent

ü Thehighestlevelofquality

ü Themostcost-effectivemodel

ü Thefastestturnaroundtime

ü Thelatesttechnologicalresources

… we should combineboth models!

Anotheralternative

TheHybridModel

• Fullscalability

• Smallfixedcost

• Lowheadcount

• Fullqualitycontrol

• Languageconsistencythroughoutproducts

• Productandcompanyspecialists

• Allowsworkingwithlastminuterequests

• Allowssavingsduetoplanning

• Allowsinterdepartmentalandintra-teamcollaboration

• Allowstheeducationofcontentcreatorsonparticularitiesofdifferentregionstoimprovethequalityofthesourcematerial

• Flexibilitytoadjusttochangingschedules

In-house+Outsourcing

Maincharacteristics

TheHybridModel

Problemseliminated

• Highinvestmentinresources(personnel,systemsandworkflows)

• Lackofscalability

• Costofslowingdownproduction(whenattritionhappens)

• Costofhiringandtrainingthestaff(initiallyandwhenattritionhappens)

• Costoframp-uptime(initiallyandwhenattritionhappens)

• Qualityissues

• Lackofprocesscontrol

• Linguisticreviewcosts

In-house+Outsourcing

Conclusion

Conclusion

Rightsourcing meansusingthetoolsandknowledge

availabletochoosethemosteffectiveandappropriate

sourcingmodelforyourbusiness.

Rightsourcing

”Don’tbeafraidtobecontroversial… you

put yourself inabetter positionto be on

the right side of history”– Eileen Carey

Thankyou!