In-House vs Outsourced

Transcription

1 In-House vs Outsourced Leveraging the best of both worlds Márcia Fervienza March 2017

2 Agenda ü How the market is organized today ü A brief history of the outsourcing model and the emergence of LSPs ü Differences between sourcing models ü Another alternative

3 A little bit about me Brazilian Life Coach and Psychologist Certified in Strategic Management Based in Atlanta, GA 10+ years of Localization experience Specialized in leading multicultural teams to elevate brand perception and support company growth through Localization ü Focus on planning, strategy and quality assurance ü Expert in productivity, engagement and people management ü ü ü ü ü ü

4 How the Market is Organized Today

5 Market overview Client-side MLV SLV Tool companies Freelances

6 Current sourcing models The in-house model In-house team Mandatory use by internal divisions Optional use by internal divisions Serving the company only Serving other companies as well Serving the company only Serving other companies as well

7 Current sourcing models The outsourcing model LSP (MLV, SLV, Freelancer) Full outsourcing Partial outsourcing Client (internal management)

8 A Brief History of the Outsourcing Model and the Emergence of LSPs

9 Outsourcing Model A brief history of the outsourcing model and the emergence of LSPs Until the 1970s The in-house model was predominant in the market. 1970s Beginning of computer technologies. The concept of outsourcing in general is revived. China is called the world s number one factory. 1980s Larger players move their internal localization teams to less costly European countries. Ireland becomes a localization hub. INK, the first company to offer outsourced localization services, is born.

10 Outsourcing Model A brief history of the outsourcing model and the emergence of LSPs 1990s Globalization + tech boom = huge localization expansion. Companies massively switch to outsourcing. Many LSPs are born. Larger MLVs outsource their core translation services to SLVs. Trados, born in 1984, establishes itself as the industry leader in TM technology. Companies start consolidating. The emergence of different tools and source file formats requires translators to be semi-engineers. 2000s Move from TM to GMS. Y2K scare brings another boom in technology development. High Speed Internet becomes widely available sees the beginning of the Broadband Age. The development in high-tech data storage facilitates remote work. New view towards localization and translation.

11 Outsourcing Model A brief history of the outsourcing model and the emergence of LSPs Renewed focus on content localization Focus on programming & publishing environments (XML, Java and.net). Growing importance of open standards (TMX and XLIFF) TODAY Increased focus on core translation skills and domain expertise Translators are back to being translators

12 Differences between sourcing models

13 Choosing your sourcing model Things to consider before making a decision ü Business strategy ü Size of the company ü Volume of work ü Distribution of the work during the year ü Office space ü Annual budget for Localization ü The nature of your content ü Number of languages supported on an ongoing basis ü Number of languages (if any) supported on an ad-hoc basis

14 In-House Model Advantages Accommodates last minute requests Fixed cost that is easier to budget Inter-departmental collaboration Product and Company specialists Quality control (product and people) Boosts morale Disadvantages Higher investment in resources Requires dedicated staff No flexibility High initial set up cost Cost of hiring and training the staff Cost of ramp-up time Before deciding to go in-house, ask yourself: ü How soon do you have to start? ü What are your mid to long term needs? ü What is the talent availability in your area?

15 Outsourcing Model Pay as you go Advantages Reduced personnel costs Access to talent all over the world Focus on core business No training or software upgrade costs Expertise without long term commitment Disadvantages Quality control Little to no process control Cost of fixing substandard work Responsiveness Requires more planning Disconnect between departments Before deciding to outsource, ask yourself: ü How will you control quality? ü How much will it cost to fix substandard work? ü How predictable are your schedules?

16 In-House or Outsourcing? Competitive or Complementary? If we want ü The best talent ü The highest level of quality ü The most cost-effective model ü The fastest turnaround time ü The latest technological resources we should combine both models!

17 Another alternative

18 The Hybrid Model In-house + Outsourcing Main characteristics Full scalability Small fixed cost Low headcount Full quality control Language consistency throughout products Product and company specialists Allows working with last minute requests Allows savings due to planning Allows interdepartmental and intra-team collaboration Allows the education of content creators on particularities of different regions to improve the quality of the source material Flexibility to adjust to changing schedules

19 The Hybrid Model In-house + Outsourcing Problems eliminated High investment in resources (personnel, systems and workflows) Lack of scalability Cost of slowing down production (when attrition happens) Cost of hiring and training the staff (initially and when attrition happens) Cost of ramp-up time (initially and when attrition happens) Quality issues Lack of process control Linguistic review costs

20 Conclusion

21 Conclusion Rightsourcing Rightsourcing means using the tools and knowledge available to choose the most effective and appropriate sourcing model for your business.

22 Don t be afraid to be controversial you put yourself in a better position to be on the right side of history Eileen Carey

23 Thank you!