Competitive Translation Prices Means Big Savings

Competitive Translation Prices Means Big Savings
As the MD of one of the fastest growing localization companies in New Delhi, India, and having worked in the region for more than 7 years in the language industry, you might expect a unique perspective. However, my observations will probably seem quite standard and actually apply to translation/localization companies all over the world. The arguments I present here in this Article are typical of discussions related to offshoring and basing production operations in low cost versus (India) high cost countries (Western Europe).
While many translation companies or translation services agency (TSA) in the developed economies like Western Europe offer foreign language translation services, it often costs more than it should as their indirect cost is high. The most common pricing method by companies in the developed economy for translation services is a mark-up model, whereby a supplier mark-ups the translator’s pay rate by a percentage that accounts for federal and state taxes, its indirect expenses, and profit. Companies in developing economy like ours by the name of Lingvopedia (based in India), also follow this traditional mark-up model, while simple to understand, but our indirect expenses like translation technology like trados, employee wage rate, electricity consumption, rentals, etc. are low for which the buyers are getting the same service from the same translator but at a competitive price. The attention has shifted from cutting down the direct cost to a more blended approach of cutting down the indirect cost. Added to this, due to the phenomena of offshoring translation work, prices are coming down and it’s harder to offer competitive pricing in high cost countries until the direct cost is also negotiated.
The translation company that provides the well organized, efficient processes and the experienced resources at the lowest possible cost will prevail and this is only possible if we hire top flight labor in developing countries at a low wage rate and put other indirect cost reductions into consideration. The main problem that many Western European translation companies have to face now is the ability to offer their clients cost savings.
Lingvopedia, along with the help of its strategic translator partners and finance department, has devised a competitive translation pricing model that accounts beneficial for both the company and the client and ensures its clients pay the lowest price possible for translation services from a specialist translation agency. Also, this assembled group works at solving actual business costing problems that our company may be facing. Eventually there hasn’t been a change in the quality of translation services as the idea is to offer quality translation services at a competitive price by cutting edge technology and cost cutting interventions.
When we compared pricing from other suppliers in a statutory plus model versus a national tiered mark-up as a percentage model, the long-term savings opportunities were very compelling and beneficial for our clients.
In general, the translation services are priced per word/ per page/ per document of source English or translated English language and we offer a competitive rate for each foreign language.