THE 2024 NIMDZI 100


How buyers view the LSP landscape

What the ranking doesn’t show is that many of the top providers in the industry are not in direct competition with one another. Because the market is so fragmented, there are many clusters of top players for the various sectors within the language services industry. 

While companies from the top ranks are trying to diversify and branch out into other segments, no one, for example, comes near Keywords Studios when it comes to gaming, near Iyuno when it comes to media localization, or near LanguageLine Solutions in the area of interpreting.

In every segment of the market, there are a handful of LSPs that have reached the level of brand awareness that puts them in a top-of-mind position for buyers. From a buyer’s point of view, the top companies in each segment of the industry are more likely to be bundled and tend to be interrelated in the client's mind. Let’s take a look at who they are, per sector of the industry.

What buyers want

In 2023, many buyers were conservative with spending on localization. Now tasked by C-level with figuring out how to implement generative AI, localization and globalization programs are cautious with spending and/or trying to see how this new tech can continue to drive cost efficiencies. This is happening in parallel or on top of MT initiatives run by these programs, as many were already pursuing tech-driven cost efficiencies before the ChatGPT hype.

Localization budgets are generally stable or on the rise, but that doesn’t necessarily equate to more spending by buyers. Teams are frequently asked to do more with less. The trifecta of optimization, automation, and integration remain the most mentioned challenges by leaders regarding technology.

At the same time, the top three challenges that keep localization program leaders up at night are related to their vendors: quality, on-time delivery, and the need for a proactive and knowledgeable engagement of the LSP partners.

The main challenges of buyer-side localization leaders

Separately, in a 2022 study, Nimdzi gathered responses from localization decision-makers to understand the deciding factors for selecting LSP partners. Unsurprisingly, localization buyers highly value on-time delivery and quality management, but it’s worth noting that communication, flexibility, and transparency are just as important. In fact, 56% of buyers reported they need providers to be “partners to [their] business.” This supports the qualitative data gathered in interviews, indicating that localization managers want external partners that can become an extension of their internal teams. 

What buyers value most in relationships with LSPs

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