Three reasons to consider an SLV.pdf

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  • 7/29/2019 Three reasons to consider an SLV.pdf

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    | MultiLingual March 2013 [email protected]

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    Lets be honest, good freelancers work a lot nasty peoplesay that poor freelancers work even more because they arepopular among LSPs due to the low cost. They work a lot morethan eight hours a day and produce much more than thestandard turnaround of 2,500 words a day. Its like a merry-go-round: once youre on, you cant hop off or else you loseyour clients. The word counts and deadlines piling up each dayare not the best environment for proper quality procedures.In most cases, and it is also true for the most experienced andvalued linguists, a freelancer finishes a project, delivers it andthen starts another project. The project manager is lucky if thetranslator did an automated spell check. Xbench or QA Dis-tiller? Well, sometimes, when they have less work. How aboutat least reading their own work in the target language beforedelivery? Forget it!

    Thats where control comes in. Someone has to control theprocess that freelancers follow and the output they deliver.This is very hard to achieve at multilanguage vendor compa-nies. There are examples of top freelancers who were absoluteleaders in their languages when they worked for local transla-tion companies where the quality of their work was controlled,where they received scores and regular feedback. Once theystarted working for LSPs outside their countries, their qual-ity slowly deteriorated since they received no feedback. Why?

    Because there was no control over their performance. Its pos-sible, too, that there was no process at all.Most companies work with the same pool of freelanc-

    ers, thats the truth about the language industry. Apart fromproper sourcing (that usually means that one to five translatorsout of 100 qualify for collaboration; lets be honest, anythingdifferent than that sooner or later leads to disaster) the key iscontrol and a well-defined process of checking the translatorswork, assigning scores and, if need be, applying penalties forpoor quality. Even if they wanted to, freelancers cannot checktheir own work objectively. Having a good SLV on your sidemeans not only access to carefully chosen linguistic resources

    WWe prefer to work with freelancers is what

    vendor managers, procurement managers, projectmanagers or production managers usually answerto single language vendor (SLV) representativesoffering them language services. But is it a goodapproach?

    The pros and cons of working with freelancers are wellknown to language service provider (LSP) executives andemployees. SLVs are often perceived as a type of freelancer,

    just bigger and more costly, with no additional value. Is this acorrect view of SLVs? Using freelancers for projects has becomea habit in the localization industry and is a true driving forcebehind this business. 500,000 translators in 6,000 languageswork hard each day in order to bridge the gap betweenmanufacturers and their clients globally with the help of LSPcompanies that secure the peace of mind of executives inglobal markets. But is it really an efficient approach? Are therisks behind sourcing and managing multiple freelancers duringcomplex projects really worth it? Can you afford to ignore thebenefits of collaboration with an SLV?

    You may say: I dont know any of those benefits, unless youconsider the higher price a benefit. But in fact, the benefits ofworking with an SLV are the same that you offer to your own

    clients. They are the reasons your clients dont go to freelancersdirectly with their tasks, but go to you instead. This is the sameadded value that you offer your customers when closing a deal:greater control over the process and quality, as well as supplierconsolidation that results in cost savings.

    Marek Makosiej is managing director with CONTRAD,a single language vendor for Polish. For 15 years he hasheld various functions in the language industry,from freelancer through project and vendor manager.

    Perspectives Marek Makosiej

    Three reasons

    to consider an SLV

    mailto:[email protected]
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    www.multilingual.com March 2013 MultiLingual |

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    in numbers that guarantee the propercompletion of even the largest or themost complex projects, but also fullcontrol over the output. Just like yourmultilanguage vendor company.

    Consolidation and costConsolidation and cost go very closely

    together. You may say: I have alreadyconsolidated the team by removing theweak links with time. This gave me theopportunity to offer greater volumesto a smaller number of linguists andreceive discounts from them in return.Right you are. Thats how it works. Butunfortunately, it seems to be the endof possible cost savings. Lets thinkwhether you could save more. Of course.Thats how consolidation works.

    First of all, by hiring an SLV, youinstantly consolidate resources. You

    work with one point of responsibility(usually a dedicated project manager onthe SLV side) and have access to dozensor even hundreds of carefully selectedand controlled language profession-als. A freelancer delivers a project thathas not been checked properly to theSLV that works for you? Its not yourproblem. This issue will be discoveredand eradicated before you receive deliv-ery. If you worked with the freelancerdirectly, you would have a real prob-lem freelancers usually dont haveany backup plans in case of fai lure andaccidents happen and you would losea lot of time. Time is another factorthat is closely connected with con-solidation. After all, time is money. Butmore on that later.

    Lets get back to consolidation andhow it can affect your cost. Theres nodoubt that consolidation saves money.With several conditions, though. First ofall, you need to reduce the headcount.

    Your freelancers are supported by anarmy of people on your side: vendormanagers, project managers, accountspayable and other staff. When youreduce the number of suppliers, yourheadcount falls, too. Lower headcountmeans lower employee cost. Simple.

    Second of all, you need to leveragethe consolidated spend, which meansyou have to negotiate lower prices.Thats where we can talk about theperceived and real cost of hiring an SLVversus hiring a freelancer. Of course,SLVs apply margins and of course, free-lancers do not. But the truth is that in

    the reality described at the beginning ofthis article, the SLVs margin is probablythe lowest possible cost you can pay foryour client being happy and not losingthem due to the poor performance of afreelancer. The risk in hiring a freelanceris much bigger than the SLVs margin

    value. But going back to leveraging thespend, whats the whole buzz aboutconsolidation? Its easy: you will receivelower prices from one supplier thatreceives higher volumes the samevolume that would otherwise be sent tomany providers turns into higher volumefor that one provider.

    Third, you need to reduce the numberof tasks, and this is connected to reduc-ing headcount. More suppliers meanmore tasks either carried out by youremployees or outsourced. For instance,splitting a project into many parts for

    many freelancers means many tasks,and this needs a lot of time. You caneasily cut this cost by sending a projectto an SLV. The rates they offer usuallyhave project management fees included;hence you move a big part of this costto the SLV supplier. An example oflowering the external cost is pending USlegislation that would require businessesto file a 1099 form for every providerwith whom they spend $600 or moreper year. Most businesses will outsourcethis task and it would be completed

    for each supplier, using one SLV resultsin a potential outsourcing cost that ismultiple times lower than in the case ofmultiple providers.

    ImplicationsPeople are accustomed to their pro-

    fessional habits and we dont want tochange something that works, theres nodoubt about it. The question is whethertheres anything that works better. In anever-changing world, we are challengedto seek new and more efficient solu-tions each day to meet our objectives.Its better to foresee the upcoming needfor a change and act proactively ratherthan react to new circumstances. Usu-ally, it is too late then. It is particularlytrue with the language industry whereLSPs need to be very responsive to thequickly changing reality of their clients

    on the one hand, while on the otherhand, the belief that time-proven pro-cedures and solutions will work foreverprevents localization service suppliersfrom taking new, better approaches.With the current business environ-ment and global economic climate, itseems reasonable to change the storyfrom We prefer to work with freelanc-ers to We welcome SLVs, especiallywith the machine translation boom andenormous volumes to be processed justaround the corner. M

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