Localization, by its very nature, is a global business. The globalized language service company offers several distinct advantages outside of production efficiency. The globalized language service company also has the opportunity to offset domestic revenues with foreign revenues helping to diversify portfolios and create stability regardless of market fluctuations.
Respondents to the ATC UK survey showcased several interesting trends. Close to 1 in 4 (24 percent) of UK companies derive 100 percent of their revenue from the UK and the European Union. This identifies several key markets to explore.
UK
Respondents to the ATC UK survey receive a significant amount of their revenues outside of the UK. In fact, only one company stated that over 90 percent (99 percent) of their revenues came from the UK alone. 4 in 10 respondents who stated that over 50 percent of their revenue comes from outside of the UK, averaged 82 percent of their revenues coming from other markets.
European Union
The second largest market served by ATC UK survey respondents is the European Union. 62 percent of respondents get over 75 percent of their business from the European Union and the UK. 24 percent of respondents state that 100 percent of their revenue comes from the EU and the UK. Those companies with significant revenue generated within the European Union feel that there are risks related to the uncertainty associated with Brexit.
The United States
The third largest market for ATC UK survey respondents is the United States. 24 percent of respondents stated that at least 25 percent of their revenue comes from the US. While the US plays a key role in revenue diversity and geographic distribution, it continues to represent an interesting market opportunity for UK language service companies outside of traditional markets such as the UK and EU.
Asia
Asia is a source of revenue for 38 percent of respondents. The average revenue derived from Asian markets only represents an average of 7.5 percent of their total overall revenue. Only 10 percent of respondents generate over 10 percent of their revenue within Asia at an average of 17.5 percent. While the number of respondents working in the UK suggests the overall importance of the Asian market, the overall percentage of revenue suggests that the market is underdeveloped.
Other
38 percent of respondents generate revenue outside of the UK, EU, US and Asia. The majority, 86 percent, generate less than 10 percent. The remaining 14 percent generate an average of 30 percent from markets other than the UK, EU, US and Asia. Markets in Latin America, Africa, and India continue to represent a fertile opportunity for UK Language Service Companies.
The ATC UK Language Industry Survey forms a snapshot of the UK’s language services industry. It provides us with a glimpse into the UK market as it stands today in a rapidly changing and evolving global industry, and an uncertain political landscape. Read the full report here.
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20 October 2019
Tags: Asia, ATC Survey, Localization, Market research, revenue, the United States, Translation, UK, US
