Translation Management Systems for Enterprises and LSPs
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1 Translation Management Systems for Enterprises and LSPs TMS Options for Nine Business Scenarios By Benjamin B. Sargent and Donald A. DePalma
2 Translation Management Systems for Enterprises and LSPs By Benjamin B. Sargent and Donald A. DePalma Copyright 2014 by Common Sense Advisory, Inc., Cambridge, Massachusetts, United States of America. Published by: Common Sense Advisory, Inc. 100 Cambridgepark Drive Cambridge, MA USA No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Permission requests should be addressed to the Permissions Department, Common Sense Advisory, Inc., 100 Cambridgepark Drive, Cambridge, MA 02140, , info@commonsenseadvisory.com. See for usage guidelines. Trademarks: Common Sense Advisory, Global Watchtower, Global DataSet, DataPoint, Globa Vista, Quick Take, and Technical Take are trademarks of Common Sense Advisory, Inc. All other trademarks are the property of their respective owners. Information is based on the best available resources at the time of analysis. Opinions reflect the best judgment of Common Sense Advisory s analysts at the time, and are subject to change.
3 Translation Management Systems for Enterprises and LSPs i Table of Contents Topic... 1 Executive Summary... 2 Why TMS?... 3 Enterprises and LSPs Rely on TMS for Productivity and Scale... 3 Technology Suppliers Offer a Wide Range of TMS Solutions... 5 Many Organizations Employ Alternatives to Formal TMS... 7 Connectivity and Business Intelligence Needs Not Limited by Type... 8 Integration Requires Connectors, Plug-ins, and Comprehensive APIs... 8 Business Reporting Draws on Both Translation Analytics and BPM... 9 TMS Market Trends Enterprise and LSP Users Seek Different Depths of Focus Buyers and Suppliers Share Three Contrasting Production Models LSPs Need More Business Data than Enterprises High-Level Workflow for Enterprise, Detailed Workflow for LSPs TMS Evolves to Support Taylorist and Agile Work Methods Taylorist Dogma Gives Way to the Agile Reality The Transparency of Agile Undermines Taylorism s Silo Effect TMS Solutions Come in Two Flavors: Open and Closed Open Systems Take Advantage of Multi-tenant Architecture Nine Scenarios for TMS Enterprise Use Cases Keyed to Organizational Approach Streamlined Enterprise Best Fit: Language-Oriented TMS Standard Enterprise Best Fit: Comprehensive TMS Fully Staffed Enterprise Best Fit: Language- and Business-Oriented TMSes Arms-Length Adoption via Captive TMS and Marketplaces Captive TMS Delivers Features for Buy-Side Language Professionals Retail TMS Minimizes Interactions for Business Users Marketplace TMS Creates a Level Playing Field for Buyers and Suppliers LSPs Add Multiple TMS Deployments as They Grow LSP Business Management Best Fit: Business-Oriented TMS LSP Common Job Processing Best Fit: Language-Oriented TMS LSP Dedicated Production Line Best Fit: Comprehensive TMS Selecting the Right Type of TMS for Your Organization Information Sources Related Research Technology Research for Global Leaders Technology Research for Industry Providers About Common Sense Advisory Future Research Applied Research and Advisory Services Copyright 2014 by Common Sense Advisory, Inc.
4 ii Translation Management Systems for Enterprises and LSPs Figures Figure 1: Language-Oriented TMS Functions for Enterprise Environment Figure 2: Comprehensive TMS Functions for Enterprise Environment Figure 3: Language + Business TMS Functions for Enterprise Environments Figure 4: Buy-Side Interface for Captive TMS Figure 5: Buy-Side Interface for Retail TMS Figure 6: Buyer and Supplier Interfaces for Marketplace TMS Figure 7: Business-Oriented TMS in LSP Operations Figure 8: Language-Oriented TMS in LSP Operations Figure 9: Comprehensive TMS for LSP Standalone Production Unit Tables Table 1: Sources of Translation Technology... 3 Table 2: The Core TMS Product Types... 5 Table 3: Primary Use Cases and Best-Fit TMS Types Copyright 2014 by Common Sense Advisory, Inc.
5 Translation Management Systems for Enterprises and LSPs 1 Topic Translation management systems (TMS) arose by systematizing what were originally discrete desktop and server applications, such as translation memory (TM), project databases, and contact lists for sub-contractors. Common Sense Advisory first identified the parameters of TMS as a software category in 2006 (see Translation Management Technology, Dec06). Market dynamics have since broadened the range and variety of solutions, and practitioners once again express confusion as new entrants and fresh approaches compete for attention. The purpose of this report is to clarify the types of TMS available today and assist technology buyers in identifying the correct sub-category of system that will best address their particular business case. We discuss general technology and process innovation trends that affect technology decisions for enterprises and language service providers (LSPs). This report will help operational managers and tool strategists working in enterprise and LSP environments understand the differences between system types, how they came about, what kind of jobs they were designed to handle, and which options they should be looking at or not. To complete this research, we spoke with 28 technology providers of translation management systems. In this report, we cover: Why TMS? We describe the role of TMS in a fragmented, globally distributed supply chain of translation production, noting the types of systems available and alternatives. TMS Market Trends. We analyze how business issues in the buyer environment are shifting the development focus for new and existing software vendors. Nine Scenarios for TMS. We detail the elements or functional components needed to address nine common business case scenarios. Information Sources. We list the companies we interviewed for this report. Related Research. We provide links to previously published research on translation management and related technology topics. Copyright 2014 by Common Sense Advisory, Inc.
6 36 Translation Management Systems for Enterprises and LSPs Information Sources Common Sense Advisory interviewed the following companies for this report. Across AIT (Advanced International Translations) Cloudwords Crowdin Easyling Gengo Glider Path Kilgray Kinetic thetechnologyagency Lionbridge Memsource Ontram Plunet ]project-open[ RR Donnelley Sajan SDL Smartling Sovee Star Group Text United Thebigword Transifex Translations.com Welocalize Wordbee XTM XTRF Copyright 2014 by Common Sense Advisory, Inc.
7 Translation Management Systems for Enterprises and LSPs 37 Related Research This report builds on technology research at Common Sense Advisory going back to Technology Research for Global Leaders We recommend the following research for enterprise technology buyers: TMS Users Revealed (Feb12): Over the past decade, translation management system (TMS) products have gone from being applications in search of users to being an indispensable part of the arsenal of growing companies in command of or in search of global markets. Which industries, and what departments, are using these systems; why did they elect to purchase the software; how are they using it; and are they satisfied? Build vs. Buy along the S-Curve for TMS (Dec11): Companies with internally developed technology often wonder whether they should continue to develop their in-house TMS, or switch to a commercial solution from an independent software vendor. This brief summarizes our current thinking on the topic. How to Select a Translation Management System (Nov11): This report describes software functions relating to 12 business needs commonly associated with the adoption of TMS. We explain the background needed to build a short list of technology vendors, and list 26 translation management solutions according to a typology based on system orientation. Content Strategy for the Global Enterprise (Apr11): This report describes the content challenges faced by most enterprises, provides a typology of content, and recommends where machine translation fits best. Evolution and Revolution in Translation Management (May08): This report examines the ERP-like factors that drive the translation management software sector, outlines buyer types, projects market size and growth, and details the assessment criteria that Common Sense Advisory uses for such systems. It will be useful for anyone learning how TMS differs from other translation automation technologies and evaluating products. Copyright 2014 by Common Sense Advisory, Inc.
8 38 Translation Management Systems for Enterprises and LSPs Translation Management Takes Flight (Mar09): This report analyzes how organizations formulate a translation management strategy and adopt the enabling TMS technology. It will be useful if you are formalizing translation processes, centralizing activities, or considering major expansion of your globalization efforts. Technology Research for Industry Providers We recommend the following research for LSP technology buyers: How LSPs Should Pay for Software (July13): Confused by TMS pricing models? This report explores the pricing schemes of software vendors in the market, using data from 20 independent software vendors. After examining the justifications for innovative models, we provide guidance to LSPs on how to select the best purchasing option based on their operational needs. How Buyers Use Translation Management Systems (Feb12): Which industries, and what departments, are using these systems? Why did they elect to purchase the software, how are they using it, and are they satisfied with the results? And most importantly, how should your company, as a provider of translation services, react to these changing needs? This report provides insight for LSPs on the technology practices of translation buyers. Translation Management Systems for LSPs (Nov11): This report provides a detailed model for LSPs to use when selecting technology vendors for shortlisting. We ve structured the report to help prospective software buyers think through the functional aspects of translation management and to ensure completeness of the resulting criteria. Build vs. Buy along the S-Curve for TMS (Dec11): LSPs with internally developed technology often wonder whether they should continue to develop their in-house TMS, or switch to a commercial solution from an independent software vendor. This brief summarizes our current thinking on the topic. Tech-Savvy Language Service Providers (Aug10): This report examines LSP approaches and attitudes toward use of technology in translation operations, exploring opportunities for both business process and language process automation. We examine the underlying factors that push LSPs to Copyright 2014 by Common Sense Advisory, Inc.
9 Translation Management Systems for Enterprises and LSPs 39 adopt new technology, which operational challenges they seek to resolve, and what business benefits they achieve. Evolution and Revolution in Translation Management (May08): This report examines the ERP-like factors that drive the translation management software sector, outlines buyer types, projects market size and growth, and details the assessment criteria that Common Sense Advisory uses for such systems. It will be useful for anyone learning how TMS differs from other translation automation technologies and evaluating products. Copyright 2014 by Common Sense Advisory, Inc.
10 40 Translation Management Systems for Enterprises and LSPs About Common Sense Advisory Common Sense Advisory, Inc. is an independent research firm committed to objective research and analysis of the business practices, services, and technology for translation, localization, and interpreting. With its research for both Global Leaders and Industry Providers, Common Sense Advisory endeavors to improve the quality and practice of international business, and the efficiency of the online and offline operations that support it. To find out more about our research and how to become a member: us info@commonsenseadvisory.com. Visit Call Future Research Common Sense Advisory seeks interviewees from the community of people involved in building business applications for international use. If you would like to be interviewed or have clients who would like to share their experiences, please us at info@commonsenseadvisory.com. We anonymize participants and hold all information in the strictest confidence. Applied Research and Advisory Services This report and other Common Sense Advisory research into the best practices of business globalization serve as the foundation for our Applied Research and Advisory Services including International Customer Experience Assessments, Vendor Selection, Localization Business Process Audits, Globalization Excellence and Optimization Assessments, and Globalization Roadmaps. us at info@commonsenseadvisory.com for more information. Copyright 2014 by Common Sense Advisory, Inc.
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