Over the next 12 months what will happen in the world of globalization and its supporting network of translation, localization, and internationalization?

1. Translation automation technology and distribution morph. Smaller firms like across, Alchemy, Lingotek, and MultiCorpora will challenge incumbent leader SDL-Trados on translation memory with rapid product turns and innovative distribution and market acceptance models. On the automated translation front, statistics-based solutions from Google, IBM, Language Weaver, and Microsoft will increase consideration and use of this long-evolving technology. Meanwhile, cadres of globalization newbies — buyers and suppliers — will enter the market with few preconceptions about how things work, further challenging the dominant tool and service paradigms.
2. CMS-TMS saddle up some partnerships — again. Corporate data balloons more than 50% annually and information publishers want to pump up the number of languages they target, but most CMS companies stubbornly refuse to add the specialized workflow and integrated tools required for translation management. We expect continued growth for TMS solutions from Idiom, SDL, and a raft of newer entrants. Expect to see more private-label integrated solutions between TMS and CMS vendors. Having learned from Idiom’s and Global Sight’s failed 1999-2000 partnerships, this time will signal actual integrations.
3. Vendor management gains visibility. Sourcing translators is often relegated to a secondary role in LSPs and mostly amounts to maintaining rudimentary databases of professionals. This reactive function will benefit from initiatives like the Translator Profile Exchange (TPX) that will allow LSPs to receive automatic updates on translator profiles and also check how other LSPs have rated them.
4. Mash-ups find their tongue. The first websites that combined content from multiple sources into a total user experience melded Google maps with real estate listings. Think a directory service tied to Google maps that sends an SMS to interpreters in the vicinity of a courthouse or hospital that needs language help; or Proz and DotSUB mashed up to support pro bono subtitling.
5. Private equity expands its role in the language market. On the heels of Veritas Capital buying its way into U.S. government LSP business, we expect to see more investment from the venture firms anxious to spend down its funds. What could happen? How about: 1) A roll-up of smaller LSPs or globalization software vendors into a larger, more viable firm; or 2) taking a public language services or technology company like Lionbridge or SDL private, slicing and dicing costs, adding a few smaller acquisitions, and wrapping it up for a new offering in a year or two a la Hertz.
6. Government suppliers eye commercial markets. Fearing the actions of a Democratic Congress in the United States, LSPs focused on military and intelligence language issues plan beyond Afghanistan and Iraq. Meanwhile, big Army money continues to get allocated, saps translator and project management supply, and drives up costs. Some government-focused LSPs look to the commercial market seeking higher margins and a new source of revenue to please shareholders — the Government Services Administration (GSA) has already joined the Association of Language Companies and lots of government contractors showed up at the American Translators Association Conference. Success will not be easy as they face an unregulated market and lots more competition both at home and abroad.
7. India invests in deconstructing the Tower of Babel. India’s National Knowledge Commission recently suggested that the translation industry could “create more than 500,000 jobs in the country.” More work is being done in India as high-tech vendors build centers of competence there — Cisco, Microsoft, EMC, and others. This shift virtually guarantees that major decisions about product localization will be taken in Asia. Case in point: Cisco’s new Chief Globalization Officer will live in Bangalore, not Silicon Valley. As early as 2004, we predicted that Indian companies would enter the language market — expect the training paid for by Cisco et al. will empower a new generation of Indian language start-ups.
8. The China card still baffles many. North Atlantic translation agencies will continue to buy low-cost production centers in China, but economics will set the stage for future M&A originating in Asia. Following the lead of Lenovo buying IBM’s PC division, Wanxiang eyeing Ford’s auto part group, and India’s planned creation of a translation industry, the Chinese government will begin building out its own language sector. The People’s Republic has buckets of foreign-currency reserves; a growing awareness of the problems of translation both for its internal minorities and for its massive export engine; and really cheap labor (how about US$600 per year for an editor?). Expect to see Chinese fact-finding missions visit American and Europe LSPs to learn how to sell translation and produce world-quality output.

How did our crystal ball do for this year just ending? Click here to see what our predictions for 2006 about best practices, technology, and market development.