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The T 35 Language Service Providers op

by Nataly Kelly and Robert G. Stewart
In this brief, we present 35 of the worlds leading providers of translation, localization, and interpreting services. We also size the market based on 2009 reported revenue data, and present our projections for the next five years. This years list of top-earning includes four visible tiers of revenue (see Table 1). At the top, three companies hover around a level of US$400 million. The next seven firms earn between US$100 and 300 million. After the top 10 companies, there is a significant drop-off in reported earnings. The next 15 companies on the list range from around US$30 to 85 million. Language service providers (LSPs) in the final group earn more than US$18 million, but less than US$30 million.
Company HQ Country FR US US US UK US US US US LU UK UK CH IT US 2009 Revenue in US$M 457.00 404.70 389.25 298.93 269.18 221.50 190.50 125.00 120.00 117.99 85.80 54.71 51.91 50.38 50.30 Employees Offices Status

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

HP ACG McNeil Technologies, Inc. Lionbridge Technologies Language Line Holdings SDL TransPerfect / Translations.com L-3 Linguist Operations & Technical Support Manpower, Inc. SOS International Ltd. euroscript International S.A. RWS Holdings PLC thebigword Group CLS Communication AG Logos Group Welocalize, Inc.

4180 7750 4200 5000 1991 1055 842 410 1200 1297 476 370 600 115 367

26 21 26 10 56 57 1 12 6 30 12 9 19 7 9

Public Private Public Private Public Private Public Public Private Private Public Private Private Private Private

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The Top 35 Language Service Providers

Company

HQ Country JP CZ FI SE CZ US ZH JP BE US DE SE IE ES ZH JP US US BE SE

2009 Revenue in US$M 45.70 42.60 41.81 41.37 34.30 34.00 33.90 33.55 32.91 30.02 29.89 28.01 26.33 23.46 22.60 22.36 22.00 21.90 20.02 18.30

Employees

Offices

Status

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Honyaku Center Inc. Moravia Worldwide AAC Global Corporation Semantix AB Skrivanek Group Cyracom International, Inc. hiSoft Technology International Ltd. Crestec, Inc. Jonckers Translation & Engineering s.a. Merrill-Brink International KERN AG CBG Konsult AB VistaTEC Ltd. SeproTec Multilingual Solutions CSOFT Ishida Taiseisha Inc. Language Services Associates Pacific Interpreters Telelingua International Sprkservice Sverige AB

206 430 400 166 400 407 4500 357 225 100 129 180 102 350 450 165 150 220 145 35

7 11 17 12 53 4 16 13 12 10 42 9 5 16 9 30 3 4 6 2

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Table 1: The Top 35 Global Language Service Providers (2010) Source: Common Sense Advisory, Inc.

How Big is the Language Services Market?

This year, we compiled a database of 23,380 LSPs. We also analyzed detailed data from 839 LSPs, as collected through a survey, to reveal more specific information about the market itself, including its regional breakdowns. Common Sense Advisory calculates that the market for outsourced language services was worth US$23.267 billion in 2009.

Copyright 2010 by Common Sense Advisory, Inc. Unauthorized Reproduction & Distribution Prohibited

28 May 2010 www.commonsenseadvisory.com

The Top 35 Language Service Providers

Figure 1: Language Service Provider Population Density Source: Common Sense Advisory, Inc.

Our study measures actual financial activity for fiscal year 2009. We found that the vast majority of the market is concentrated in two major geographic regions of the world Europe and North America. To come up with the most appropriate and universally accepted regional groupings, we followed the classifications developed by the United Nations. The 23,380 LSPs we identified were located in 149 countries throughout the world (see Figure 1).

How Fast is the Market Growing?

According to the year-to-year changes in revenue and the expected earnings reported by the LSPs we surveyed, the language services market is growing at an annual rate of 13.15%. Over the coming five years, we expect the market to reach US$38.12 billion (see Table 2). This year, to provide greater visibility into the market, we present the nine major regions that make up the largest shares of total market size (see Figure 2).

Copyright 2010 by Common Sense Advisory, Inc. Unauthorized Reproduction & Distribution Prohibited

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The Top 35 Language Service Providers

Region North America Northern Europe Western Europe Southern Europe Asia Eastern Europe Latin America Africa Oceania Growth Totals

Market Share 48.50% 19.00% 11.10% 8.59% 7.67% 4.49% 0.35% 0.18% 0.13% 100%

2009 US$ M 11,284 4,421 2,583 1,999 1,785 1,045 81 42 30 23,267

2010 US$ M 12,769 5,002 2,922 2,264 2,019 1,182 92 47 34 26,327

2011 US$ M 14,448 5,660 3,307 2,559 2,285 1,338 104 54 39 29,789

2012 US$ M 16,347 6,404 3,741 2,895 2,585 1,513 118 61 44 33,706

2013 US$ M 18,497 7,246 4,233 3,276 2,925 1,712 133 69 50 38,138

Table 2: Projected Language Services Revenues and Regional Distribution Source: Common Sense Advisory, Inc.

Figure 2: Global Language Services Market Share by Region Source: Common Sense Advisory, Inc.

Copyright 2010 by Common Sense Advisory, Inc. Unauthorized Reproduction & Distribution Prohibited

28 May 2010 www.commonsenseadvisory.com