The Total Economic ImpactÃ¢â€žÂ¢ of TransPerfect GlobalLink...Product Suite. The purpose of this study is to provide readers with a ... (PIM), digital marketing, or databases

A Forrester Total Economic Impact™

Study Commissioned By TransPerfect

April 2017

The Total Economic Impact™ of TransPerfect’s GlobalLink Product Suite Cost Savings And Business Benefits Enabled By GlobalLink

Table Of Contents Executive Summary 1

Key Findings 1

TEI Framework And Methodology 3

The GlobalLink Customer Journey 4

Interviewed Organization 4

Key Challenges 4

Solution Requirements 5

Key Results 5

Financial Analysis 7

Benefit 1: Productivity Gains—Improved Efficiency Of The Website And Mobile App Translation Process 7

Benefit 2: Translation Cost Savings 8

Benefit 3: Web Content Translation And Integration Savings 9

Unquantified Benefits 10

Flexibility 10

Cost 1: Content Translation Costs And Access To The GlobalLink Platform 12

Cost 2: Integration Costs 12

Financial Summary 14

TransPerfect GlobalLink Overview 15

Appendix A: Total Economic Impact 20

Project Director:

Liz Witherspoon

April 2017

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1 | The Total Economic Impact™ of TransPerfect GlobalLink

Executive Summary

TransPerfect commissioned Forrester Consulting to conduct a Total

Economic Impact™ (TEI) study and examine the potential return on

investment (ROI) enterprises may realize by deploying the GlobalLink

Product Suite. The purpose of this study is to provide readers with a

framework to evaluate the potential financial impact of GlobalLink on their

organizations to bring efficiency and consistency to their translation

processes.

To better understand the benefits, costs, and risks associated with a

GlobalLink implementation, Forrester interviewed a large pharmaceutical

company with multiple years of experience using the platform. The

GlobalLink Product Suite automates the management of localization

processes and resources and seamlessly integrates with client back-end

systems like content/document management, eCommerce, product

information management (PIM), digital marketing, or databases.

Furthermore, it has built-in content workflow so that the organization can

move through the translation process more efficiently. This organization

specifically chose the platform because of its website localization and

mobile app capabilities and the integration with its Sitecore web content

management system.

Prior to deploying GlobalLink, the customer used email and FTP servers to

send requests for translations and to receive the files once they had been

translated for review. However, this process led to many inefficiencies,

including version control issues and inefficient communications around the

translation process. This process typically involved three stakeholders—

two project managers and a translation specialist. When the translations

manager from a large pharmaceutical company was tasked with

translating a customer-facing medical information website into nine

languages within a year, it was clear that the traditional translation

approach would not work. With GlobalLink, the translations manager could

manage the translation of thousands of pages of content—including

interactive content such as videos, self-assessments, and calculators—

through one central portal. Said one IT project manager: “This is the first

time we’ve done something of this scale—translating thousands of pages

of content into nine languages simultaneously. GlobalLink takes a huge

management burden off of me. There would be no way that I could do it

all—it would be impossible for one person to manage it without this

platform.”

Key Findings

Quantified benefits. The interviewed organization experienced the

following risk-adjusted quantified benefits:

› Productivity gains due to improved efficiency of the website and

mobile app translation process. GlobalLink improved the efficiency of

the website translation process by providing a centralized online system

to manage and communicate around the translation process.

Furthermore, it has process workflows built into the platform so that

approvals can be automated. Without the technology, the organization

would have had to hire an additional headcount and spend an average

of 20 hours more per project managing the process.

Benefits And Costs

Translation time savings:

$1.4 million

Integration time savings:

702 hours

Translation cost savings:

$955,800


› Translation cost savings of $955,800. Translation memory is a central

piece to any localization suite. It enables the company to reduce the

costs of translations by leveraging content that had already been

translated and approved in the past. Depending on the language and the

type and nature of the source content, the interviewed organization was

able to leverage about 50% of its existing content for future translations.

› Web content integration savings. Because of the integration between

GlobalLink and Sitecore, the organization was able to automatically load

the nine translated languages with minimal technical intervention. This

led to significant cost and time savings for the project, averaging about

78 hours of reduced manual integration work for each of the nine

translated websites.

Costs. The interviewed organization experienced the following risk-

adjusted costs:

› Document translation costs and access to the GlobalLink platform.

For each project, the organization paid TransPerfect for the localization

of the content, including web content pages and multimedia content.

These costs also include user access to the platform.

› Integration adaptor costs. These costs were paid to TransPerfect and

include configuring the Sitecore adaptor to manage the translations of

source site content, configuring and testing GlobalLink workflows to

accept translation requests from the Sitecore adaptor and return

translated content, and training end users.

Forrester’s interview with an existing customer and subsequent financial

analysis found that the interviewed organization experienced benefits of

$2.3 million over three years versus costs of $1.05 million, adding up to a

net present value (NPV) of $1.19 million and an ROI of 113%.

$1.2M

$818.7K

$270.4K

Productivity gains -improved efficiency

of web site andmobile app

translation process

Translation costsavings

Web contenttranslation and

integration savings

Benefits Present Value (Three-Year)

ROI 113%

Benefits PV $2.3 million

NPV $1.2 million


TEI Framework And Methodology

From the information provided in the interview, Forrester has constructed a

Total Economic Impact™ (TEI) framework for those organizations

considering implementing GlobalLink.

The objective of the framework is to identify the cost, benefit, flexibility, and

risk factors that affect the investment decision. Forrester took a multistep

approach to evaluate the impact that GlobalLink can have on an

organization:

DUE DILIGENCE Interviewed TransPerfect stakeholders and Forrester analysts to gather data relative to GlobalLink.

CUSTOMER INTERVIEW Interviewed one organization using GlobalLink to obtain data with respect to costs, benefits, and risks.

FINANCIAL MODEL FRAMEWORK Constructed a financial model representative of the interview using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewed organization.

CASE STUDY Employed four fundamental elements of TEI in modeling GlobalLink’s impact: benefits, costs, flexibility, and risks. Given the increasing sophistication that enterprises have regarding ROI analyses related to IT investments, Forrester’s TEI methodology serves to provide a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.

The TEI methodology

helps companies

demonstrate, justify,

and realize the

tangible value of IT

initiatives to both

senior management

and other key

business

stakeholders.

DISCLOSURES

Readers should be aware of the following:

This study is commissioned by TransPerfect and delivered by Forrester

Consulting. It is not meant to be used as a competitive analysis.

Forrester makes no assumptions as to the potential ROI that other

organizations will receive. Forrester strongly advises that readers use their own

estimates within the framework provided in the report to determine the

appropriateness of an investment in GlobalLink.

TransPerfect reviewed and provided feedback to Forrester, but Forrester

maintains editorial control over the study and its findings and does not accept

changes to the study that contradict Forrester’s findings or obscure the

meaning of the study.

TransPerfect provided the customer name for the interview but did not

participate in the interview.


The GlobalLink Customer Journey

BEFORE AND AFTER THE GLOBALLINK INVESTMENT

Interviewed Organization

For this study, Forrester conducted an interview with the translations

manager from a large pharmaceutical organization. The company is one

of TransPerfect’s largest customers and spends around $12 million

annually on translation services. The partnership is a critical one

because the efficient and accurate translation of content is crucial for this

organization’s brand reputation and risk avoidance for its clinical trials of

drugs:

› The organization is an international developer, manufacturer, and

distributor of pharmaceuticals. It has operations and employees in 30

countries and requires extensive translation services for internal and

external content.

› The organization is in a highly regulated industry and requires

document translation services, website localization, and linguistic

validation for its corporate services, research division, manufacturing,

and marketing business units.

› The organization has an educational website that involves thousands

of pages of content, including web pages, photos, videos, quizzes,

calculators, and self-assessment tools.

Key Challenges

The translation manager tasked with translating a health education website

into nine languages came into the role knowing that a traditional approach

to translation management would not suffice. The health education

website, a popular resource for consumers and medical professionals,

consisted of thousands of web pages, images, videos, and interactive tools

such as self-assessments. Furthermore, it had a corresponding mobile

app. The enormity of translating thousands of web pages simultaneously

into nine languages in a short timeline (under a year) was not lost on this

experienced translations manager who had worked at other global

organizations and had managed the translation process with different

providers. She immediately turned to GlobalLink as the answer for

managing this process and became an early adopter and power user of

the software in her organization.

The goals of this project included:

› Manage the translation of a website that used to be two separate

printed books into nine languages.

› Increase web traffic and brand awareness for the organization through

increased reach to countries outside of the United States.

› Centralize translation services to one vendor to benefit from the cost

savings of repeat content and the consistency of the delivery of

translations.

› Reduce the risks associated with translating medical content that can

easily be misrepresented if translated in a haphazard way without

regard for linguistic variation.

“We moved from emailing to

the GlobalLink platform. An

email inbox is a closet — it

became hard to find and

manage translations and it’s

no way to work. Now we have

a portal to go to where all

projects are quoted, stored,

and returned — a safe haven

for translations. It is very

valuable to me.”

Translation manager,

pharmaceutical company


Solution Requirements

The organization selected GlobalLink for its ability to integrate

seamlessly with its web content management system, Sitecore, and its

online translation management platform, in order to reduce the time to

manage the translation process. Furthermore, the translation capabilities

that extended to interactive and visual content, along with mobile apps,

was a key reason for selecting TransPerfect as a partner:

› The pharmaceutical company began working with TransPerfect in 2007

for transactional translation. In 2012, TransPerfect was awarded

“preferred vendor status” with the pharmaceutical company.

› The initial translation work originated from the human resources

department in the corporate services division to get consistent

information to all employees in 30 countries.

› As TransPerfect began working with the company as a preferred

vendor, the organization began to consolidate from 100 translation

vendors down to one.

› Currently, 25% of the $12 million in annual translation spending comes

from corporate services (HR, L&D [training], compliance, ethics, IT, and

communications). Fifty percent originates from the research division in

support of clinical studies, R&D, patient recruitment, global safety and

pharmaceutical vigilance, and scientific, regulatory, and medical affairs.

The other 25% comes from the manufacturing and human health

division that creates the sales and promotional materials for the

company.

› Accurate and linguistically correct translations are a critical part of the

translation process for this organization. The organization is in a highly

regulated industry, and its clinical trials and customer-facing material

must be accurate to generate proper outcomes.

Key Results

The interview revealed that key results from the GlobalLink investment

include:

› GlobalLink streamlined the translation management process. The

most significant benefit experienced by the pharmaceutical

organization was the ability to centralize the translation management

process within one platform, bringing together the TransPerfect project

manager, the key client stakeholder, and the local language

translations experts. This enabled one licensing manager to do the

work that it would have taken at least two to three full-time resources to

manage without the platform. By submitting projects through

GlobalLink, the project manager was able to avoid email

communications, project status update check-ins, and version control

management.

› The organization experienced general translation cost savings

due to translation memory. The interviewed organization, under its

global contract, was able to save on translation costs because of the

capability of translation memory. After a segment of text, phrase, or

group of words is translated, it is then stored in translation memory to

be leveraged for future projects. The translation of the company’s

“The benefit of this portal is

that it’s a one-stop shop for

submitting jobs, reviewing

quotes, and keeping it very

organized. There’s also a

progress bar that tells you

how far along things are. It

gives me a quick eyeball on

how things are happening.

There is never a problem I

don’t hear about. It’s such a

nice, easy-to-use interface —

very fitting and smartly

designed. When a job is

ready and a file is done, the

window slides down and

drops, like a present is

delivered. It gives me a small

pleasure.” Translations manager, pharmaceutical company


educational website into nine languages benefited from this translation

memory, yielding thousands of dollars of savings.

› The organization was able to save technical resources and time

during web content integration. The interviewed organization

needed to extract, translate, and replace web content with minimal

human intervention. Although some manual adjustments were still

required for languages that have special characters or different lengths

of words, the organization was able to save technical web content

management resources because of GlobalLink’s out-of-the-box

integration with Sitecore.

› The organization reduced its risk and exposure to errors related

to translation. This organization, a highly reputable and visible

pharmaceutical company that is publicly traded, operates in a highly

regulated industry. TransPerfect’s linguistic validation services help

mitigate the risk associated with translating medical terminology and

concepts into different languages. Furthermore, the centralization of

translated content into one vendor and platform enabled the

organization to meet local standards while ensuring a global mindset.

› The organization increased web traffic to its website as a result of

the translations. An ultimate goal of this organization is to increase

global web traffic to its site. While this both provides education and

promotes goodwill among the medical and consumer communities, it

also raises brand awareness for the pharmaceutical company and

improves its brand reputation. The more quickly and accurately the

organization can have its website translated, the faster it increases

brand awareness around the globe.


52%three-year benefit PV

$1.2 million

Financial Analysis

QUANTIFIED BENEFIT AND COST DATA

Benefit 1: Productivity Gains—Improved Efficiency

Of The Website And Mobile App Translation

Process

GlobalLink improved the efficiency of the website translation process

by providing a centralized online system to manage and communicate

around the translation process. Furthermore, it has built-in workflow

management so that approvals can be automated. Prior to GlobalLink,

the organization relied on email exchanges among multiple parties

involved in the translation process (including project managers from both

companies, translators, and approvers). The interviewed customer feels

strongly that without GlobalLink, the enormous effort of translating nine

websites simultaneously would not have been possible. The benefits of

the GlobalLink Product Suite include the reduction of manual tasks as

involved in the extraction and re-importation of content, versioning, and

testing. Project management and revisions are also simplified. And this

becomes even more important with the scale of the project—translating

thousands of pages of web content, interactive content, videos, images,

and a mobile app into nine languages. But the tight integration of the

localization suite with back-end systems such as the content

management repositories and the introduction of well-defined workflows

either eliminated or streamlined these manual tasks.

Following the GlobalLink implementation, the organization reduced the

average hours of effort per translation project by 20 hours. Because

projects range in complexity and length, 20 hours was used as an

average. In the first year of the website localization effort, the

organization estimates that it submitted 250 projects. A project typically

consists of many pages of content. At a fully burdened average annual

salary of $100,000 for a translations project manager, the organization

saved $720,000 in the first year due to efficiency gains in the translation

process. Furthermore, the organization indicated that it would not have

been possible for the small staff to manage the translation process

without GlobalLink. The model assumes a headcount cost savings of one

project manager per year due to the efficiencies gained by using the tool.

As a result, the interviewed organization saved $820,000 in Year 1,

$244,000 in Year 2, and $287,200 in Year 3. The total benefit resulting

from productivity gains over the three years was $1,351,200.

The table above shows the total of all benefits across the areas listed below, as well as present values (PVs) discounted at 10%. Over three years, the interviewed organization expects risk-adjusted total benefits to be a PV of more than $2.3 million.

Total Benefits

REF. BENEFIT YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE

Atr Productivity gains — improved efficiency of website and mobile app translation process

$820,000 $244,000 $287,200 $1,351,200 $1,162,885

Btr Translation cost savings $540,000 $205,200 $210,600 $955,800 $818,723

Ctr Web content translation and integration savings

$158,696 $85,109 $74,283 $318,087 $270,417

Total benefits (risk-adjusted) $1,518,696 $534,309 $572,083 $2,625,087 $2,252,024

GlobalLink removes 20 hours of inefficiency from every translation project


36%

three-year benefit PV

$818,723

Benefit 2: Translation Cost Savings

The use of translation memory allows organizations to leverage content

that had already been translated and approved in the past. When the

organization submits new content for translation, the translation memory

feature can detect words, segments, sentences, or even whole

paragraphs that have previously been translated (“gold” match) or that

are very similar to approved text in the database (“fuzzy” match). In both

cases, it helps human translators reduce the amount of words that need

to be newly translated and ensure consistency across different

translations. As the translation costs are mostly a function of the number

of words to be translated, the utilization of translation memory can be

seen as direct cost savings. Words that fully or partially match a previous

translation still may have revision costs associated. In this analysis, we

conservatively estimate that for each word that was correctly matched,

the organization saves $0.15, whereas for a partial-matched word, the

company saves $0.075.

Assuming that the website has around 2,000 pages with an average of

400 words per page, the total number of words translated in Year 1 is 7.2

million. That number drops to around 2 million words in years 2 and 3 as

30% of the content is refreshed annually. Assuming that 40% of the

words can be perfectly matched for future translations, the organization

saves about $773,280 over three years with “gold” matches and

$182,520 over three years with “fuzzy” matches. Over three years, the

total benefit of translation cost savings was $955,800.

Productivity Gains — Improved Efficiency Of Website And Mobile App Translation Process

REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3

A1 Number of project managers involved in translation process

3 2 2

A2 Number of translations projects Assumes 30% new

content annually 250 75 98

A3 Efficiency savings per project Hours saved using

GlobalLink 20 20 20

A4 Fully loaded salary rate for project manager $100,000 $48 $48 $48

A5 Assumed headcount savings (core team) 1 project manager

hire avoided per year @ $100,000

$100,000 $100,000 $100,000

At Productivity gains — improved efficiency of website and mobile app translation process

(A1*A2*A3*A4)+A5

$820,000 $244,000 $287,200

Risk adjustment 0%

Atr Productivity gains — improved efficiency of website and mobile app translation process (risk-adjusted)

$820,000 $244,000 $287,200

Translation memory drives 36% of benefits


12%

three-year benefit PV

$270,417

Benefit 3: Web Content Translation And Integration

Savings

Because of the integration between GlobalLink and Sitecore, the

organization was able to automatically load the nine translated

languages with minimal technical intervention. TransPerfect has built

over 45 connectors to web content management and eCommerce

systems. It invests heavily in keeping this technology updated so that it

streamlines and shortens the time to update websites with localized

content. The integration with Sitecore led to significant cost and time

savings for the website localization project, averaging about 78 hours of

reduced technical integration work for each of the nine translated

websites. Without the Sitecore integration provided by TransPerfect, the

interviewed organization would have had to rely on web content

managers internally (or contracted externally) to ensure that the

translated content properly loads and displays on nine versions of the

website. Because each language is different in terms of the characters it

uses, the size of those characters, and the number of words required to

express a particular thought, the adaptation of content from English into

nine languages requires significant technical oversight. Other technical

and user interface decisions include: considering the display of content

(right-left or left-right layout), determining how special characters are

used and encoded, properly spacing the content depending on the

language, ensuring cultural sensitivity to the display of words and

images, and updating dates/currencies/calendaring functionalities that

are country-specific.

This model assumes that without the Sitecore integration, a web content

manager would have to spend about 80 hours—or two weeks of effort—

to integrate localized content and adjust it to display properly for the

localized languages. With the help of the GlobalLink integration, the

resource now spends about 2 hours adjusting the display to ensure that

the adaptor properly completed the work. Human intervention will always

be required in these cases because the adaptor cannot account for all

scenarios in which a localized website will need adjustment. In addition

to the adaptor, the organization experienced reduced costs around the

The GlobalLink

integration with Sitecore

saved the organization

78 hours for each of the

nine translated websites

Translation Cost Savings


B1 Assumed number of words for website translations

2,000 pages (with an average of 400 words per page) translated into 9 languages)

7,200,000 2,160,000 2,808,000

B2 Assumed percentage of "gold" words 40% B1*B2 2,880,000 864,000 1,123,200

B3 Assumed percentage of "fuzzy" words 20% B1*B3 1,440,000 432,000 561,600

B4 Assumed net cost savings per "gold" word $0.15 B2*B4 $432,000 $172,800 $168,480

B5 Assumed net cost savings per "fuzzy" word $0.075 B3*B5 $108,000 $32,400 $42,120

Bt Translation cost savings B4 + B5 $540,000 $205,200 $210,600

Risk adjustment 0%

Btr Translation cost savings (risk-adjusted) $540,000 $205,200 $210,600


translation of multimedia content. Because TransPerfect employs

graphic designers and multimedia designers, the interviewed

organization was able to avoid using an outside agency to get assistance

with translating interactive content such as videos, self-assessment

tools, and the mobile app. With an estimated 25% of its projects having

multimedia components, the company estimates that it avoids about

$2,000 per project because of the extensive resources provided by

TransPerfect. The total web content translation and integration cost

savings over three years was $318,087.

Unquantified Benefits

Increased Web Traffic. The interviewed organization said that the

rapid translation of the company’s website into nine languages

increased web traffic. However, the benefit was not calculated for this

study because the website’s primary purpose is educational rather

than promotional. This, in turn, increases the reach of the company’s

brand and improves brand reputation, as the content delivered on the

site is highly valued and viewed as a trusted resource by the medical

community and consumers around the world. This increase in brand

awareness and brand reputation could lead to additional financial

benefits as the pharmaceutical company brings its drugs to market in

new regions of the world.

Flexibility

The value of flexibility is clearly unique to each customer, and the

measure of its value varies from organization to organization. There

are multiple scenarios in which a customer might choose to implement

GlobalLink and later realize additional uses and business

opportunities. The organization heavily used GlobalLink for the

Increased web traffic

through translated web

content drives brand

awareness for the

organization.

Flexibility, as defined by TEI, represents an investment in additional capacity or capability that could be turned into business benefit for a future additional investment. This provides an organization with the "right" or the ability to engage in future initiatives but not the obligation to so.

Web Content Translation And Integration Savings


C1 Number of languages into which the website was translated

9

C2 Hours to integrate translated languages without TransPerfect connector

Maintenance hours in Year 2 & Year 3

80

C3 Hours to integrate translated languages after TransPerfect connector

2

C4 Fully loaded salary rate (IT) $100,000 $48

C5 Percentage of translations projects that are multimedia

25% 63 19 24

C6 Estimated cost savings per project from having multimedia resources available through TransPerfect

$2,000 $2,000 $2,000

Ct Web content translation and integration savings

(C1*(C2-C3)*C4)+(C5*C6)

$158,696 $85,109 $74,283

Risk adjustment 0%

Ctr Web content translation and integration savings (risk-adjusted)

$158,696 $85,109 $74,283


educational website group. This is only one instance of GlobalLink

across the organization. Overall, the organization has 600 GlobalLink

users. Those areas of the company also using the platform include

corporate services (HR, L&D [training], compliance, ethics, IT, and

communications); the research division; and the manufacturing and

human health division, which creates the sales and promotional

materials for the company. As other translation project managers begin

to use the platform more, the organization stands to gain even more from

its investment. Other benefits achieved through broader adoption would

include:

› The efficiency gains achieved through the review portal, which is

a way for people within the organization to review translated

content to see source and target side by side and add comments,

grade and score it, and improve the overall productivity of the

translation process. For example, when someone makes a change to

content within the review platform, the segment updated is changed

within translation memory and will be applied to future uses. It reduces

the time to update content and enforces consistency across the

organization. Also within the review portal environment, translation

reviewers can filter the translated content to view the net-new changes

and not spend time reviewing content that was already approved and

captured in translation memory. This reduces the time for internal

review by the internal language reviewers and subject matter experts.

› The benefit of the integration with Tableau, which is a report

portal that the organization can use to set up parameters to track

metrics around quality, performance against SLAs, and

translation memory savings. The organization can organize these

reports by language, department, market, and division. A business user

or power user who is supervising translation at an enterprise view can

see trends and gain business insights. The integration with Tableau

also centralizes and helps the organization analyze translation vendor

performance.

Flexibility would also be quantified when evaluated as part of a specific

project (described in more detail in Appendix A).


Cost 1: Content Translation Costs And Access To

The GlobalLink Platform

For each project, the organization paid TransPerfect for the

localization of the content, including web content pages and

multimedia content. Included in these costs was access to the

GlobalLink platform to manage the translation process. The

organization paid $1 million for the first year of website translation work

into nine languages. Twenty-five percent of this content was

multimedia, which was translated at a higher cost than web content. In

years 2 and 3, the organization only paid for the maintenance of that

content, which is estimated at 30% of the original content. The total

cost for content translation over three years was $1,172,500.

Cost 2: Integration Costs

The organization paid an integration adaptor fee for the API connector to

Sitecore. These costs were paid to TransPerfect and included configuring

the adaptor to manage the translations of source site content, configuring

and testing GlobalLink workflows to accept translation requests from the

Sitecore adaptor and return translated content, and training end users.

These fees are initial and do not recur in years 1 through 3.

Total Costs

The table above shows the total of all costs across the areas listed below, as well as present values (PVs) discounted at 10%. Over three years, the interviewed organization expects risk-adjusted total costs to be a PV of more than $1.05 million.

Content translation costs

and platform fees make

up the bulk of the costs.

REF. COST INITIAL YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE

Dtr Content translation costs $0 $1,000,000 $75,000 $97,500 $1,172,500 $1,044,328

Etr Integration adaptor costs $14,400 $0 $0 $0 $14,400 $14,400

Total costs (risk-adjusted) $14,400 $1,000,000 $75,000 $97,500 $1,186,900 $1,058,728

Content Translation Costs

REF. METRIC CALC. INITIAL YEAR 1 YEAR 2 YEAR 3

D1 Content translation and platform fees

$1,000,000

D2 Number of translation projects

75 98

D3 Average cost per project D2*D3 $1,000 $1,000

Dt Content translation costs

$1,000,000 $75,000 $97,500

Risk adjustment 0%

Dtr Content translation costs (risk-adjusted)

$0 $1,000,000 $75,000 $97,500


Integration Adaptor Costs

REF. METRIC CALC. INITIAL YEAR 1 YEAR 2 YEAR 3

E1 Initial setup fee for adaptor $14,400

Et Integration adaptor costs E1 $14,400 $0 $0 $0

Risk adjustment 0%

Etr Integration adaptor costs (risk-adjusted)

$14,400 $0 $0 $0


Financial Summary

CONSOLIDATED THREE-YEAR RISK-ADJUSTED METRICS

Cash Flow Chart (Risk-Adjusted)

-$1.5 M

-$1.0 M

-$0.5 M

$0.5 M

$1.0 M

$1.5 M

$2.0 M

Initial Year 1 Year 2 Year 3

Cashflows

Total costs

Total benefits

Cumulative net benefits

The financial results calculated in the Benefits and Costs sections can be used to determine the ROI and NPV for the interviewed organization's investment. Forrester assumes a yearly discount rate of 10% for this

analysis.

These risk-adjusted ROI

and NPV are determined

by applying risk-

adjustment factors to the

unadjusted results in each

Benefit and Cost section.

Cash Flow Table (Risk-Adjusted)

INITIAL YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE

Total costs ($14,400) ($1,000,000) ($75,000) ($97,500) ($1,186,900) ($1,058,728)

Total benefits $0 $1,518,696 $534,309 $572,083 $2,625,087 $2,252,024

Net benefits ($14,400) $518,696 $459,309 $474,583 $1,438,187 $1,193,297

ROI 113%


TransPerfect GlobalLink Overview The following information is provided by TransPerfect. Forrester has not validated any claims and does not

endorse TransPerfect or its offerings.





Appendix A: Total Economic Impact

Total Economic Impact is a methodology developed by Forrester

Research that enhances a company’s technology decision-making

processes and assists vendors in communicating the value proposition

of their products and services to clients. The TEI methodology helps

companies demonstrate, justify, and realize the tangible value of IT

initiatives to both senior management and other key business

stakeholders.

Total Economic Impact Approach

Benefits represent the value delivered to the business by the

product. The TEI methodology places equal weight on the

measure of benefits and the measure of costs, allowing for a

full examination of the effect of the technology on the entire

organization.

Costs consider all expenses necessary to deliver the

proposed value, or benefits, of the product. The cost category

within TEI captures incremental costs over the existing

environment for ongoing costs associated with the solution.

Flexibility represents the strategic value that can be

obtained for some future additional investment building on

top of the initial investment already made. Having the ability

to capture that benefit has a PV that can be estimated.

Risks measure the uncertainty of benefit and cost estimates

given: 1) the likelihood that estimates will meet original

projections and 2) the likelihood that estimates will be

tracked over time. TEI risk factors are based on “triangular

distribution.”

The initial investment column contains costs incurred at “time 0” or at the

beginning of Year 1 that are not discounted. All other cash flows are discounted

using the discount rate at the end of the year. PV calculations are calculated for

each total cost and benefit estimate. NPV calculations in the summary tables are

the sum of the initial investment and the discounted cash flows in each year.

Sums and present value calculations of the Total Benefits, Total Costs, and

Cash Flow tables may not exactly add up, as some rounding may occur.

PRESENT VALUE (PV)

The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total NPV of cash flows.

NET PRESENT VALUE (NPV)

The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have higher NPVs.

RETURN ON INVESTMENT (ROI)

A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.

DISCOUNT RATE

The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.

PAYBACK PERIOD

The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.

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