In countries with low government centralization, the market tends to be messy, for both the provider and the buyer. There are lots of small players and individual interpreters that compete for a myriad of small contracts and individual assignments. For both the buyer and the provider this usually means that a lot of time is wasted on the procurement process and there is usually an overload of bureaucracy. In these markets, we won’t see many large players because it is much harder for an LSP to make significant profits. Examples of this are countries like Germany, France, Italy, and Belgium.
In countries with high government centralization, usually one or two large players occupy the majority of the market. While this significantly reduces the time spent on procurement, it also means that these one or two large players are in a monopoly position. This poses a number of risks that can have a negative knock-on effect:
A medium level of centralization is the Goldilocks Zone countries should aim for.
Examples of this can be found in Australia, the US, Canada, and the UK.
The language services industry is a diverse space by its very nature as its primary purpose is to connect people from a vast number of language and cultural backgrounds. Communication is at the core of all human interactions and where there is a need for communication, there is a need for language services.
Remote interpreting solutions have been both in development and in use for a long time now. However, prior to the COVID-19 pandemic, uptake was slow. The onset of the pandemic changed this drastically, and, ever since, it seems that the growth, innovation, and investment in this field has been unstoppable. Once considered an afterthought or sub-par alternative to onsite services, remote interpreting has stepped out of the shadows to become the key to continuity of business and care in many industries.
If you follow Nimdzi Insights then you know that we like to create rankings. Why, you ask? The answer’s simple. We — along with our clients and industry peers — like to know who the top players are in any given field or area. We look at the global market for language services as a whole, as well as in-country markets and leaders in specific industry verticals and services.
If you follow Nimdzi, you know that every year we publish a report called The Nimdzi 100 that ranks the 100 largest language service providers (LSPs) in the world. It’s an important indicator that tells us a great deal about how the global market for language services has developed in the latest financial year, and historical data gathered over the years further allows us to generate trend lines and consider industry growth over a longer period of time.