Localization In 2010 And Beyond

Localization in 2010 and Beyond: A Varied Spectrum of Service Models

Please note that the audio for this webcast will be streamed.

Presented by Paula ShannonHosted by Roberto Sastre

17 June 2009

The Cobbler‘s Song

I sit and cobble at slippers and shoon

Company confidential – distribution prohibited without permission



From the rise of sun to the set of moon





Cobble and cobble, as best I may






Cobble all night and cobble all day






Cobble all night and cobble all day

And I sing as I cobble this doleful lay…



The stouter I cobble, the less I earn




For the soles ne’er crack, nor the uppers turn





h b k hThe better my work, the less my pay





h b k hThe better my work, the less my pay

But work can only be done one way


The Mozart Effect

The issue service industries face is The Mozart Effect, as described by William Baumol, an economist at New York University*

As noted essayist and author, James Surowiecki puts it, “When Mozart composed his String Quintet in G Minor (K. 516) in 1787, you needed five people to perform it—two violinists, two violists and a cellist.

Today, you still need five people, and, unless they play really fast, they take about as long to perform it as musicians did two centuries ago.

So much for progress.”

*Performing Arts: the Economic Dilemma (1966), Baumol and Bowen

Baumol’s “Cost Disease”

In a range of businesses, such as the car manufacturing sector and the retail sector, workers are continually getting more productive due to technological innovations to their tools and equipment.


Baumol’s “Cost Disease”

In a range of businesses, such as the car manufacturing sector and the retail sector, workers are continually getting more productive due to technological innovations to their tools and equipment.

In contrast, in some labor‐intensive sectors that rely heavily on human interaction or activities, such as nursing, d i h f i h ieducation, or the performing arts there is little or no growth in productivity over time. As with the Mozart string quartet

example, it takes nursesp ,the same amount of time to

change a bandage, or college professors the same amount of time to mark an essay in 2006 as it did in


time to mark an essay, in 2006 as it did in 1966.

Are We Cobblers or Conductors?

Industry Group A

Workers are continually getting more productive due to technological innovations to their tools and equipmenttools and equipment


Industry Group A Industry Group B

Workers are continually getting more productive due to technological innovations to their tools and equipment

Labor‐intensive sectors that rely heavily on human interaction or activities, such as education, or the performing arts where there is little ortools and equipment performing arts where there is little or no growth in productivity over time


Industry Group A Industry Group B






Airlines, Car Wash, even Lawn Care: Differentiated Services and Pricing Models

What About Pricing Models?

We talk about different types of content, but the price is remains, on average, .22 USD cents per word?*


*Common Sense Advisory

What About Pricing Models?

We talk about different types of content, but the price is remains, on average, .22 USD cents per word?*

CheeseburgerCh bCheeseburger,Cheeseburger.No Coke Pepsi


*Common Sense Advisory

No Coke, Pepsi

Translation, Edit and Proof – Still Operating Circa 1986?

TEP specified service

1. An outmoded concept? Does the E and P not pre‐date TM systems

servicep y

and collaborative, cloud computing?

Our current model





servicep y


1. No definition of what we are to deliver

2. No standard process to be improved upon or re‐engineered

Our current model

Ambiguous service

description





servicep y


1. No definition of what we are to deliver

2. No standard process to be improved upon or re‐engineered

Our current model

Ambiguous service

description

Customer specified

1. Specific Definitions and Quality Levels are Determined (SLA/KPI)specified

serviceLevels are Determined (SLA/KPI)

2. Process can be Optimized and Engineered for Improvement


Quality Means

“My equirementsy qhave been met”

“Staying on message d b d”“A idi and on brand”“Avoiding

adverse outcomes”

“That LSPs use theThat LSPs use the resources I dictate”

“Minimizing headaches on our end”

“C i t I t t”


“Consistency I can trust”

POLL QUESTION

Does your company support various pricing models based on quality?

a. Never; it always needs to be the highest quality

b S ti d di th t tb. Sometimes; depending on the content

c. Yes; we always employ various pricing models based on defined levels of qualityq y


Most Meaningful KPIs and SLAs are Specific to the Client and Content


Let’s Get a Few Definitions Straight


Shift Happens ‐ Growth is Migrating to Developing Nations

Reaching 1 Billion Users requires +/‐ 127 languagesConnecting 5 Billion Users will necessitate more than 1,000 languages

English 329

Internet Top Ten Languages

Chinese

Spanish

Japanese

159

89

86

1,400,000,000

1,200,000,000

1 000 000 000German

French

Portugese

59

56

40

1,000,000,000

800,000,000

600,000,000

400,000,000

200 000 000

Korean

Italian

Arabic

34

31

28

200,000,000

0

Chinese

Russian

Arabic

Hindi

English

Spanish

Bengali

Portugue

se

Japane

seGerman

Fren

chKo

rean

Javane

seTelugu

Marathi

Vietnamese

Tamil

Italian

Turkish

Urdu

Punjabi

Ukrainian

Gujarati

Thai

Polish

Malayalam

Oriy

aBu

rmese

Azerbaijani

Farsi

Sund

aPashto

Romanian

Bhojpu

riHausa

Maithili

Malay

Serbo‐Croatia

nAwadhi

Uzbek

Yoruba

Dutch

Sind

hIgbo

Amharic

Oromo

Indo

nesian

Tagalog

Nep

ali

Assam

ese

Saraiki

Cebu

ano

Hun

garia

nCh

ittagon

ian

Zhuang

Shon

aMadura

Sinh

ala

Marwari

Magahi

Haryanyi

Greek

Czech

Chhattisgarhi

Fulfu

lde

Deccan

Malagasy

Belarusan

Kann

ada


Rest of World Languages

Millions of Users

0 35050 100 150 200 250 300

203

© Lionbridge 2008

Plotting Quality and Value of ContentQ

UA

LITY Advertising &

Collateral

CAT

ION

Q

ProductCustomer Education

PUB

LIC

Community

Product Informationand Service Mobile Ads

ATIO

NA

L Generated Content

UsereCommerce

FAQ’s

INFO

RM

A User Interface

After Sales Support Customer Care


LOWER VALUE HIGHER VALUE

I pp

Varied Content Mandates Differentiated Approaches

Marketing Content

Transaction Cost

High

Streaming Web Content

S l tiProduct, Technical Doc and online

Product Updates and Training Materials

Solution Efficiency Demands

Doc and online Help

I18N

I iti l P d t

Low

Initial Product Localization

Marketable Shelf Life of Content1/year 1/hourTranslation Cost

“ But Work Can Only Be Done One Way”…But Work Can Only Be Done One Way

Varied Service Levels – An Example

Type A: BasicThe following rates are all‐inclusive. Rates include all file preparation, translation & editing, recording & project management – Audio is VOIP and does not include dialog director or post production engineering and QA




Type B: AdvancedType B: AdvancedThe following rates are all‐inclusive. Rates include all file preparation, engineering, desktop publishing, quality assurance and project management. Audio performed by talent in a studio and includes post‐production engineer.




Type B: AdvancedType B: AdvancedThe following rates are all‐inclusive. Rates include all file preparation, engineering, desktop publishing, quality assurance and project management. Audio performed by talent in a studio and includes post‐production engineer.

Type C: ProfessionalThe following rates are all‐inclusive. Rates include all file preparation engineering desktopall file preparation, engineering, desktop publishing, testing of compiled application, quality assurance & LQI checks, DTP Print proofs, professional voice talent and project


management.

Hybrid Model – UI, MT & Community


More Content = More OptionsMicrosoft’s View from 2010 On

Broad reach toBroad reach to Community Community Broad reach to Broad reach to penetrate new penetrate new markets effectivelymarkets effectively

outreach at outreach at lowest cost lowest cost for widest for widest expansionexpansion

LowerLower‐‐cost alternativecost alternative

expansionexpansion

PremiumPremium‐‐level quality level quality for targeted for targeted productproduct

LowerLower cost alternative cost alternative for expanded for expanded marketplacemarketplace

product product audienceaudience






expansionexpansion









expansionexpansion






Current Localization Cost Model

~60% ~25% ~15%

Traditional Premium localization cost breakdown

ProofTranslation Copy Editing

60% ~25% ~15%

Logoport LTB

95% Average Quality


Current Localization Cost Model

~60% ~25% ~15%

Traditional Premium localization cost breakdown

ProofTranslation Copy Editing

60% ~25% ~15%

Logoport LTB

95% Average Quality

• What % of quality comes straight from translators?

• What % gets improved via each of the post‐translation steps?


Basic Pilot #2MT Post‐editing + Tools

50% of cost

Average to Good Translators + Tools

50% of cost

MT MT Post‐Editing LTB

50% A Q lit ?

Logoport

50% Average Quality?


Basic Pilot #2MT Post‐editing + Tools

50% of cost

Average to Good Translators + Tools

50% of cost

MT MT Post‐Editing LTB

50% A Q lit ?

Logoport


• Use of MT as baseline for Basic loc

• LTB will post‐process files and identify/flag strings with highest probability of wrong MT translation (based on experience + statistics)

• Must cut 50% of costs and reach 50% of quality (to be tested/proven in during


Must cut 50% of costs and reach 50% of quality (to be tested/proven in during pilot)

Value Pilot #1Direct Translation + Tools

Good (not great) Translators + Tools

70% of cost

MT TranslationMT Translation

Logoport

LTB



Value Pilot #1Direct Translation + Tools

Good (not great) Translators + Tools

70% of cost

MT TranslationMT Translation

Logoport

LTB


l l l l• By using only translators + tools, we can eliminate 2 steps in process

• Probably can cut costs by 30% and still maintain >=70% of quality (to be tested/proven during pilot)


• Perform a LQA to measure the Quality

Cobblers and Conductors


Service Oriented Architecture & Components for Enhanced Connectivity

Language Quality Mgt. Global

A Symphony of Service Models

CommunityM d l

Computer Assisted

TM

Quality Mgt.Branding

ModelsCrowdsourcing

Global Search

Human

Asset & Terminology

Mgt.

MTGlobal Search Relevancy

Human TranslationAuthoring


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Localization In 2010 And Beyond