in-house vs outsourced - gala global · in-house + outsourcing main characteristics. the hybrid...
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In-HousevsOutsourcedLeveragingthebestofbothworlds
Márcia FervienzaMarch2017
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Agenda
ü Howthemarketisorganizedtoday
ü AbriefhistoryoftheoutsourcingmodelandtheemergenceofLSPs
ü Differencesbetweensourcingmodels
ü Anotheralternative
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ü Brazilianü LifeCoachandPsychologistü CertifiedinStrategicManagementü BasedinAtlanta,GAü 10+yearsofLocalizationexperienceü Specializedinleadingmulticultural
teamstoelevatebrandperceptionandsupportcompanygrowththroughLocalization
ü Focusonplanning,strategyandqualityassurance
ü Expertinproductivity,engagementandpeoplemanagement
www.linkedin.com/in/marciafervienza
Alittlebitaboutme
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HowtheMarketisOrganizedToday
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Marketoverview
Client-side
MLV
SLV
Toolcompanies
Freelances
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Currentsourcingmodels
In-houseteam
Mandatoryusebyinternaldivisions
Servingthecompanyonly
Servingothercompaniesas
well
Optionalusebyinternaldivisions
Servingthecompanyonly
Servingothercompaniesas
well
Thein-housemodel
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Currentsourcingmodels
LSP(MLV,SLV,Freelancer)
Partialoutsourcing
Client(internalmanagement)
Fulloutsourcing
Theoutsourcingmodel
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ABriefHistoryoftheOutsourcingModelandtheEmergenceofLSPs
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OutsourcingModelAbriefhistoryoftheoutsourcingmodelandtheemergenceofLSPs
1980sLargerplayersmovetheirinternallocalizationteamstolesscostlyEuropeancountries.
Irelandbecomesalocalizationhub.INK,thefirstcompanytoofferoutsourcedlocalizationservices,isborn.
1970sBeginningofcomputertechnologies.
Theconceptofoutsourcingingeneralisrevived.Chinaiscalledtheworld’snumberonefactory.
Untilthe1970sThein-housemodelwaspredominantinthemarket.
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OutsourcingModelAbriefhistoryoftheoutsourcingmodelandtheemergenceofLSPs
2000sMovefromTMtoGMS.
Y2Kscarebringsanotherboomintechnologydevelopment.HighSpeedInternetbecomeswidelyavailable.2003seesthebeginningoftheBroadbandAge.
Thedevelopmentinhigh-techdatastoragefacilitatesremotework.Newviewtowardslocalizationandtranslation.
1990sGlobalization+techboom=hugelocalizationexpansion.
Companiesmassivelyswitchtooutsourcing.ManyLSPsareborn.LargerMLVsoutsourcetheircoretranslationservicestoSLVs.Trados,bornin1984,establishesitselfastheindustryleaderinTMtechnology.
Companiesstartconsolidating.Theemergenceofdifferenttoolsandsourcefileformatsrequirestranslatorstobesemi-engineers.
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OutsourcingModelAbriefhistoryoftheoutsourcingmodelandtheemergenceofLSPs
Renewedfocusoncontentlocalization
Growingimportanceofopenstandards(TMX
andXLIFF)
Translatorsarebacktobeingtranslators
Increasedfocusoncoretranslationskillsanddomainexpertise
Focusonprogramming&publishingenvironments(XML,Javaand.NET).
TODAY
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Differencesbetweensourcingmodels
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ChoosingyoursourcingmodelThingstoconsiderbeforemakingadecision
ü Businessstrategy
ü Sizeofthecompany
ü Volumeofwork
ü Distributionoftheworkduringtheyear
ü Officespace
ü AnnualbudgetforLocalization
ü Thenatureofyourcontent
ü Numberoflanguagessupportedonanongoingbasis
ü Numberoflanguages(ifany)supportedonanad-hocbasis
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In-HouseModelAdvantages
• Accommodateslastminuterequests
• Fixedcostthatiseasiertobudget
• Inter-departmentalcollaboration
• ProductandCompanyspecialists
• Qualitycontrol(productandpeople)
• Boostsmorale
Disadvantages
• Higherinvestmentinresources
• Requiresdedicatedstaff
• Noflexibility
• Highinitialsetupcost
• Costofhiringandtrainingthestaff
• Costoframp-uptime
Beforedecidingtogoin-house,askyourself:ü Howsoondoyouhavetostart?ü Whatareyourmidtolongtermneeds?ü Whatisthetalentavailabilityinyourarea?
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OutsourcingModelAdvantages
• Payasyougo
• Reducedpersonnelcosts
• Accesstotalentallovertheworld
• Focusoncorebusiness
• Notrainingorsoftwareupgradecosts
• Expertisewithoutlongtermcommitment
Disadvantages
• Qualitycontrol
• Littletonoprocesscontrol
• Costoffixingsubstandardwork
• Responsiveness
• Requiresmoreplanning
• Disconnectbetweendepartments
Beforedecidingtooutsource,askyourself:ü Howwillyoucontrolquality?ü Howmuchwillitcosttofixsubstandardwork?ü Howpredictableareyourschedules?
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In-HouseorOutsourcing?CompetitiveorComplementary?
Ifwewant…
ü Thebesttalent
ü Thehighestlevelofquality
ü Themostcost-effectivemodel
ü Thefastestturnaroundtime
ü Thelatesttechnologicalresources
… we should combineboth models!
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Anotheralternative
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TheHybridModel
• Fullscalability
• Smallfixedcost
• Lowheadcount
• Fullqualitycontrol
• Languageconsistencythroughoutproducts
• Productandcompanyspecialists
• Allowsworkingwithlastminuterequests
• Allowssavingsduetoplanning
• Allowsinterdepartmentalandintra-teamcollaboration
• Allowstheeducationofcontentcreatorsonparticularitiesofdifferentregionstoimprovethequalityofthesourcematerial
• Flexibilitytoadjusttochangingschedules
In-house+Outsourcing
Maincharacteristics
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TheHybridModel
Problemseliminated
• Highinvestmentinresources(personnel,systemsandworkflows)
• Lackofscalability
• Costofslowingdownproduction(whenattritionhappens)
• Costofhiringandtrainingthestaff(initiallyandwhenattritionhappens)
• Costoframp-uptime(initiallyandwhenattritionhappens)
• Qualityissues
• Lackofprocesscontrol
• Linguisticreviewcosts
In-house+Outsourcing
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Conclusion
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Conclusion
Rightsourcing meansusingthetoolsandknowledge
availabletochoosethemosteffectiveandappropriate
sourcingmodelforyourbusiness.
Rightsourcing
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”Don’tbeafraidtobecontroversial… you
put yourself inabetter positionto be on
the right side of history”– Eileen Carey
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Thankyou!