Webinar: Analysis of top LSPs in the world by revenue

WEBINAR: The top LSPs in the world by revenue

Full Transcript

Sandra: Hello everybody, thank you for joining us. We will be starting or recording of this session very shortly. Thank you very much.
Sandra: Well everybody, thank you very much for joining us today. Welcome to our very first name, see Webinar gold analysis of Dub lsps in the world by revenue. These webinars, the first of a series of three free webinars that will be running in the coming weeks. We are streaming this webinar live from facebook and youtube. A recording of this session will be available only for names members. Your host today are run out of Indianapolis or CEO and Co founder goes something dry or chief researcher. They will be walking us through or latest names in 100 report. My name is Sandra Olivera and I’m the business development director here at Lindsay. Mr Dr Johnson or managing director and Co founder who is behind the scenes making sure this Webinar runs smoothly. We’re going to allow perhaps a couple of minutes before a going to hit and it started with her housekeeping items. I’m going to allow a one, two more minutes and then we can continue with her house keeping items. We’re just going to be waiting for a few more people. Okay. Thank you very much. Or just allowing a few more people to join in.
Kostya: Okay.
Sandra: Well guys, with three minutes in, I think it’s okay to say that we’re going to start, uh, going, um, so once again guys, welcome to our very first names, the Webinar call analysis of top line revenue. The webinar is the first of a series of three webinars and that will be running over the next coming weeks. Okay. Wordstream in these webinar live from facebook and youtube, and I recorded it will be a recording of this webinar will be available to ordinary members. As I said before, your host today are right not to have any net door CEO and cofounder and human goes something drench who’s or chief of researcher will be walking us through or latest names, 100 report. As I said before, my name is Sandra Olivera and I’m the business development director. Mr Johnson, who is our managing director and Co founder, is behind the scenes making sure discoloring or runes and sloppily.
Sandra: Now, a couple of few housekeeping items. Feel free to post any questions at any time during the presentation, in the comments or the chat windows in either platform. Docker will be taking your questions and we’ll answer them at the end of the presentation. If you questions not answered today, we’ll be coming back to you within a couple of, within a couple of days. Follow us on social media, where in Linkedin, facebook, instagram, twitter, Google plus, Youtube, whatever is your preference. So just follow us on social media and the Hashtag for the Webinar is Hashtag names in 100. Their twitter handles are also available in the slice for your convenience by registering into the Webinar. You are already eligible to receive regular updates via email and when we publish our new comment or only accountants are. So I think that’s everything from me guys without further to do right now though. They’re all yours renetta thing. You’re muted.
Renato: Thank you. Pleasure to be talking to you from all over the world participating in this three platforms. And, uh, what, uh, I’d like to, uh, introduce essentially is why we started this study. And why did we, uh, started ranking of translation companies? There were essentially two reasons why behind our initiative. The first one was the information about the market is important when it’s released early and, um, with the speed of information and access to information that we have today. We believe that by early March when we released this survey, the first version of the research was a good time to do this. Uh, the difference between our ranking and other rankings that aren’t available in the market is that we based the ranking on research instead of basing it on surveys or information directly from the providers. What this means is that we have unveiled some companies that were not previously known and that we, um,
Renato: can, um, reach a wider audience by identifying information that is probably not 100 percent accurate but a is correct. And why is it important? It’s important for lsps to know who they’re competing against, not necessarily only for clients, because some of these new players that we identified do not cater to the traditional customers, but because they are competing for talent, they’re competing for technology and they’re also innovating in this space. It’s also important for investors because they want to know what are the trends and what is the growth that we have in this space. One of the fastest growing industries in the world. And uh, we provide them with a shopping list for their, uh, next investments. But, uh, I like Casa to start talking a little bit more about our research.
Kostya: Thank you. Hello everyone. Let me walk you through the methodology. Basically, our objective was to quickly identify the big players in the major economies. Go for Nat and I have success in network, so in disappears. So we reached out to experts in local markets and ask them, okay, who are the biggest companies in your region who have more than $10,000,000 in revenue? And this kind of companies are difficult to hide because they hire people, they have big offices, they have big presence. So we identified quite a few of them, uh, potentially, uh, around 180 companies. Once we had the list of potential companies with $10,000,000 or more in revenue, we approached them directly and ask the management, uh, for the uptodate revenue information, uh, if they didn’t provide, we went to business registers or even created our own estimates, uh, using a competitive analysis, a number of employees obligations on the media.
Kostya: So basically the list is a mortal, it’s comprehensive. We consider it an Lsp, a company that has more than half of its revenue coming from language services. And we have white definitions of language services, which includes, for example, multilingual cooperating, if you need to create a few languages, a number to it using a company’s reporting currency. So for a French company, a company that will be euros, a Russian company, a Chinese company that will be a RMB, a, but presented all the companies in one list, uh, using US dollars as the common denominator. And we use an average annual currency conversion rates, so that’s an average for every day of trading. So if you compare, our ranking was other rankings, there might be some discrepancies because of a different exchange rates. The rule of the thumb is to consider these figures. I’m a measure of their size. You want to know where the company is in the ball park.
Kostya: A actual figures might be a little bit different as the annual accounts come out of we still correct list and it’s a life moments on the Internet so we can quickly updated, uh, some companies publish there, any other accounts maybe a year after a year, so it will be still updated. But the important thing is, you know, who the big companies are there in the open, you know, the approximate revenue of, uh, you know, who the leaders are. This includes those companies that never participated in this rankings before. Ah, let me show you quickly how it looks like in practice. Uh, so you can go to the website and the revised version isn’t interactive, stable. So you can quickly type something to search through the table. Let’s say you want to see who are the big interpreting company, so you just type, interpreting and uh, the list will sort itself or you’d like to see who the big companies in France are so you can just type France and very goal, you have the biggest players in front, so it’s pretty convenient. And if you want, you can even download the CSV file behind that and use it for information purposes. So, or your own analysis if you’d like to see yourself through your own analytics system. Let me go and get back to the presentation. Right?
Kostya: Okay. So, uh, we have the revenues, the revenues are important, measure of size, but of course, uh, they are not the most important, the most important prophet. But unfortunately most companies do not publish the prophets. This is not a piece of information which is easily available. And uh, this is not something you can find it in a. I’m just giving you an example here of five companies that have different levels of profits and how this, uh, levels of profits and also the business model effects evaluation. At the top you can on the y axis, you can see the multiplier to the revenue and the number means a market capitalization of how many times the company’s valued against this revenue. And on the x axis is the revenue. So transperfect and language are the biggest companies by revenue. And so they’re on the right keywords in the group who are traded on the stock exchange, a highest by a market capitalization. Keywords in the valuations are based on the price of the stock, but a language line solutions was actually a deal in 2016 when they sold the company for one point $5,000,000,000. And this was approximately four times the revenue at the time and 10 times the Ebit, the profit before taxes and the organization. So what’s really important here is to understand the sizes, everything, business model, and the what the company’s doing and its profitability. This is really what is important, and we’re going to talk a little bit about this now about the business models Renato.
Renato: Well, in our research, we have identified six types of companies that have reached the $6,000,000 club, the 6 million hundred million dollar club. So there are six types of companies that are in this industry that have reached more than a hundred million dollars in revenue. The first group is what we call the generalists, a translation company. They have multiple office, they have a strong sales presence. They have a huge supply chain. Some of them have their own technology and they offer clients a scale and the guarantees of stability and business continuity. If you purchase from one of these leading companies that are all familiar brands, and there is a mistake in the translational was going, no one’s going to punish you for the choice of vendor is the old, uh, you’ll never get fired for buying from IBM. You. This should be the safe bet. The next, uh, uh, type.
Renato: The second type is what we call the building by new leaders. These are companies like rws and keywords who entered the top 20 after a series of acquisitions. If you go back a couple of years ago, this companies were flying under the radar and a very quickly they, they exceeded 100 million dollars revenue. Every time they buy a company, their market valuation goes up, they can issue shares at this higher valuation and buying new companies. So, uh, this has driven up the, the multipliers in our space. Rws recently bought Booz and morale for a 10 times or 11 times Ebitda, which is a much more than the usual five to seven times that had been the case before. Uh, by doing that, they’re a market valuation doubled. So it’s a profitable deal. You invest a little in your evaluation goes up significantly as you can see in the graph for rws for key words in the, in the black line and rws and the orange line.
Renato: There are other companies like Ulg in the United States, semantics and in Sweden and techniques is in France that have access to private equity and follow the same model. Uh, we believe that there’s going to be more players following this model. Next, uh, we have identified this group that has usually been missing from the rankings. Uh, that is the, the public sector and defense contractor. They also represent a bit big market. Um, some people evaluated this, this segment of the market at a billion dollar and a billion dollars. And this is a pessimistic view. Others, the conspiracy theorists will tell you that the market is much, much bigger because we believe that there is a lot of secret invisible stuff that is going on in the space. So a company’s mission essential personnel that you have listed here and global linguist solutions, they staff linguist for the military. Uh, they need to find bilingual people with the.
Renato: And one of the hardest things is this, obtain the security clearance for them to be able to work in, in sensitive materials. And in recent years they have been ramping up their multilingual intelligence analysis capability, which involves, um, artificial intelligence and machine learning, neural machine translation. And why are they a part of their market for the same reason that I mentioned that the opening, they hiring linguists, they developed technology, they, they create processes and they are a part of our community even though they’re not necessarily negotiating contracts. And the same tables there to buy a costume.
Kostya: Yes, thanks for not also going onto my favorite a business model. These media localization studios or networks of students, these guys a dab or provide subtitles for films, for TV programs, for TVC areas. And in the last couple of years they’ve seen a huge boom in the business driven by Ott streaming platforms like Netflix and Amazon prime. And what’s the other one? Uh, uh, Hbo, Hbo especially. They’ll netflix. Oh, all of the fastest growing companies. List growth. Our media localization studios and we’ll show a little bit. This is a very specialized market. And to work here, uh, they need to have this access to the pool of voice balance. The need to cast a artist. They need to have students all around the world, uh, to, to provide native speakers with the correct equipment. They need to do lip sinking version control, so there’s a lot of competency and know how that goes with this model, but at the moment, this is the fastest growing space in the market and the world proud to show that, uh, we have good lists of media localization, student efforts, uh, you see it here.
Kostya: The media could be the biggest. We couldn’t get a good estimate of their revenue. Some say it’s about 150 million, about $250 million dollars and it’s difficult to estimate because they only, they not only have a localization services, but also a post production services that have to do with a process and those movies or digital effects. Uh, anyway, uh, the growth of this company is, and the size of this company is quite impressive. Moving onto the next type of a company in the $100 million dollar club, uh, interpreting companies. And these are primarily remote interpreting, such as language blind, which is a telephone contact centers. And contrary to the usual interpreting companies, these guys do not just sell for a minute, uh, interpreting what they provide is a guarantee. So they would have a call center and they will guarantee that at a given time, a given place that there’s going to be a linguist in the required language, even at night or on weekends, the summer in both men and both these companies have grown primarily in the markets where there is a requirement, a legal requirement to have interpreting for hospitals, for the police, for government services.
Kostya: So, um, uh, these guys provide this, the public sector and big institutions with required guarantees and that’s why they got big compared to small interpreter, my companies because interpreting is a market which is smaller than translations and he’ll have another type of a company, $100 million dollar club, which is a multilingual marketing provider in the recent few years, uh, advertising huge groups such as publicists a wpp and they have acquired whole, built their own, a multilingual language services departments. Why is it important, let’s say you’re producing and advertising for a huge brand that has to go into many markets. I’m here, I have as an example, a nescafe and you want to launch this week as possible at the lowest cost. So, uh, when you have a language services company at the table very early on, uh, they can adapt the script, they can catch the realization globalization issues very early on, like switch, you have those posters and still friends university in the original script with auto service company has been something something really difficult to redraw and requiring lots of efforts to localize after the evidence has been produced. But with the language service company onboard and language services on first, not as profitable as advertising with the language services, the company on board, uh, the advertising group can make much more compelling a case at the table. So covert for worldwide is rumored to be around $250,000,000 in revenue, prodigious, uh, and translate plus together including multilingual copywriting a to have up to $226,000,000 in revenue. So this, a significant companies and this model is building more and more players, but it’s not very easy to build a successful fusion in this market.
Renato: The only type of company missing in this, uh, analysis is what people are called the Uber of translation services. They haven’t reached the scale that they need. We have found some players that work in this transactional, a long tail market, but they haven’t been able to break the hundred million mark, uh, the smartest people in the industry built this platform nsps where customers can just buy online and have a self service interface. And with very little human involvement, the technology’s amazing. It’s mandible, but in terms of revenue, they haven’t broken the hundred million dollar mark. And as you can see here, we have three of them in our ranking and we have listed a couple more that are not part of the ranking there below the revenue threshold, but there are still a failures in this space. Back to your costume.
Kostya: Yeah. Now we’re going to speak a little bit about geography and I’ll just quickly to the slide, uh, we’ve placed those companies that have $10,000,000 or more in revenue on a map to see where they come from, which countries have the largest lsps. And the interest in conclusion is that the country with single country, with the biggest number of large lsps, medium and large is the United States. And there’s approximately the same number of large companies in the whole eurozone, but with a small caveat that, uh, the eurozone and includes a United Kingdom, which is the lead on the way out. So, uh, both of them together, they dwarf the Asian countries by a number four gillespies here. If you look at the number of Lsps, you’ll still see still that a United States has a, let’s say, a 20 percent of the world’s, uh, but in terms of number of biggest stella’s business, 40 percent, 45, so it’s a very good market to start doing business and, um, that could be entrepreneurs, smart people, a very good sales in any country, uh, but a way you start where your whole market is, whereas a huge role, you need to have the fertile ground where your company can grow and the, the most fertile ground versus the United States.
Kostya: Moving on a small puzzle here. So, um, just, just to put it into perspective in Brazil, uh, their exports and the GDP is much higher than those of Sweden. But, uh, in the Indian Brazil together, that would be just maybe one, maybe two Max, a lsps of have a $10,000,000 or more in revenue. And even those lsps, they say that they’re American, not Indian at the same time in Sweden. And there are eight large companies. Um, although the, the, this, the size of the economy is smaller, what is the reason behind that? That ratio? So a one is the cost of services in the United States, an average price forward would be about twenty cents and Europe, it’s about $15, eighteen cents to the, to the final buyer if it’s a, a Western European company that’s selling. So by doing the same number of pages, I’m a translator or a translation company in the West produces much more turnover than a counterpart in India, let’s say, where the price could go as low as two cents per word. And the other reason is the access to a large, uh,
Renato: many brands that come to your mind, a Ikea, Volvo Scania, and uh, they fuel their international expansion. But as they say, every rule has an exception. In this case, we’re going to talk about two companies that don’t follow this rule. They are companies Moravia based in the Czech Republic and the second city of the Czech Republic. And based in Australia. These are companies that a drive, they have grown over $100,000,000 even though the home market is not a big market. The reason why they do this is that because these companies have focused selling to large customers like Google, apple, Amazon, Microsoft in the west coast of the United States, and that’s a thing that they have income. So if we take a look at, uh, this first part of our Webinar, the conclusions that we can reach is that there are many more companies in the world that are large than we expected originally.
Renato: Uh, we had to dig and find some of these players that are well known in the local markets but not to the international community. We have identified multiple ways, and this is the characteristics of a characteristic of the translation and localization industry that language services a span. So many markets and so many different surfaces that are multiple paths for reaching the top to reach over $100,000,000 in the US market continues to be the single biggest market. Uh, in terms of opportunity. And uh, we’ve also seen that companies that focus on the enterprise market seem to have, or government tend to have a higher revenues than those that are focusing on the retail market costs. Yeah. Oh No, it’s me. So talking again white why we showed the companies that are booming. Let’s talk a little bit about growth rates. We have looked at, as you know, has been around for so long. We plan to be around for a long, long time. So with that, a trends in the market for the past two years. What has happened in the last two years and one of the things that we use that we, we call this the slingshot approach, we look back like a slingshot and we try to look at the future and plan how things are going to project, how things are going be so
Renato: order of protection, is that the market for the next five years is going to grow at an average compound aggregate growth rate or Cagar of seven point four percent. And we should be reaching something like $60,000,000,000 in 2020. Uh, we are quite optimistic about this because if we look at the leading companies, they’re growing at an average rate of 12 percent and some of those companies are growing at a much, much higher rate cost. So why don’t you tell us about, uh, the individual companies since you did this analysis?
Kostya: Yeah. Gladly in this presentation, we’ll just cover a couple of a transit was noticed. One of them is that mergers and acquisitions really, really, really drive growth. Uh, so both a keyword students and our was the building by new leaders have tripled or went three and a half times in size of the last couple years by acquisitions. There is some organic growth there as well. But the primary source of their increasing sizes of these physicians, of course now the companies as well in France in particular this last year, the markets has been completely transformed by the acquisitions made by techniques, by data words and by atrial travel and other companies are also looking for targets. Uh, so when you’re a small company, a, you sell it three times the revenue medium, medium, five to seven times a large sector such as life sciences, lead business, so it makes sense to grow. And it also makes sense to grow by acquisitions because then you can resell at a better multiplier to be done maybe by yourself, a castle in France or an island.
Kostya: A very powerful trend. And I think it’s going to continue because of this, a rationale, a this maintenance medium size companies that are profitable, that are interesting in going to see more offers from buyers. It’s a good time to negotiate and maybe sell or maybe by company and one local collusion. I see here there could be some, a two lsps that are selling to other lsps because the vendor management function, this building by companies, they’re going to be centralized at some point. So, uh, the might just lose their client because the system has changed again. Now we’ll go to organic growth. Uh, as you can see here, the top four companies with the fastest two year organic are all immediate localization, uh, especially our union zoo digital group, 10, $11,000,000 companies two years ago they became netflix preferred vendors. Uh, they’ve seen this growth during a Netflix is expansion.
Kostya: This international program that they’ve rolled out with lots of scripted programs, I think they went from zero to 600 hours of scripted television in two years. And base volume has to be a localized. Then of course, if you’re a small company and you get $10,000,000, $20,000,000 in work, that makes you a revenue exploding. Goal top is the media, which is a 220 million company. They grew, for example, by 10 percent a year, uh, not as fast because they’re already big. It’s the low base which drives this crazy numbers and I think truclear and incise organically. It’s crazy. The other companies that are growing at a fast rate, they all have individual results. Uh, what we could trace now is that these companies that develop in the sales function and a unique proposition in the market, but primarily they’ve invested in having the groups a little sales service a little bit deeper into that. And we can talk to you about this. Okay. A to final conclusions here.
Renato: Yes. So we’ve gone through all this brief analysis and you can reach some of those conclusions yourselves. But, um, we’re very optimistic about the language services market. It remains a growth market. I like to say that a language services, as an industry that is impervious to crisis, it’s always a growing. There’s always new opportunities. There’s always new segments, new markets that require translation. So if you’re an investor, this is a market to stay. It’s a market to invest some market to grow. The other conclusion is that this a new reality we have had in the industry, many cycles of mergers and acquisitions. For those of you who have been around, you can remember when there were companies like Berlitz, uh, uh, that were merged and then they were acquired by, by Lionbridge and both Berlitz inbound had been the result of several mergers and acquisitions over the years.
Renato: But what is happening now is that it’s happening at a different clip and at a much larger revenue levels. Uh, the building by companies are moving much faster than everybody. Everybody else, m and a continues. We hear everyday about a m and a activities happing happening. But the, the phenomenon to watch for is the big companies try to buy the medium size companies and there is a vacuum that is created right now, a large companies are targeting companies in the 20 to $50,000,000 range and there’s going to be a vacuum of this companies, uh, in the next few years. And this is the opportunity for the smaller companies to move up in the list. So they’re going from being a 10, 15 to 30 slash 50, and then they become targets for new rollups and new acquisitions. This is a, a pattern that has happened in the industry for a long, long time.
Renato: So if you’re a smaller company and you’re afraid that of these trends don’t because this merger and acquisitions will create a space for you to grow. And, and your, your, your name in that ranking. I’m the third book. Collusion is that Netflix has created a significant, uh, well, we, we, we use Netflix as a proxy for a streaming content or Ott content as they call in their, in their own market. And these vendors are exploding in volume and media localization is such a big trend, not only in a streaming context area but also in the corporate. So you have large companies buying a video and subtitling and voiceover services. It’s an area. And if you look at our research, the research that we have published so far, you’re going to see that there is a lot more, uh, research and content related to voice and, and, uh, audio and video actually then, uh, other areas because it’s such an area of growth.
Renato: And I’ll, I’ll, I’ll do a little plug here for my other project globally speaking radio podcasts there. Uh, we have launched a couple of years ago and, uh, this week, this week’s episode is about Netflix in Japan and it talks essentially about this, this, uh, media challenges and the new challenges that exist for language services. So, uh, it’s an area to an area of opportunity. It’s a challenge and every challenge is an opportunity. It’s an area that will need to be watching because it’s going to affect her wins. And that concludes our presentation today. We tried to condense it in a way that you can have the rest of the day for you, but we would be very happy to answer any questions that may come up. Tucker, uh, you went back there in our production facilities. Are there any questions for any of us? Yes, we can hear you. Well, the, the, the larger companies are trying to consolidate their base and uh, maintain momentum as you can see the top players in the industry, they are owned by investors this day. It’s either private equity or shareholders and so on, so they have to continue in the growth track. So I believe that, uh, for the next couple of years their efforts are going to be in doing more acquisitions and consolidating and integrating the ones that
Renato: have already.
Tucker: Awesome. And for those of you, the question was what are these largest lsp going to do moving into 2018 and beyond to continue growing? And I just have to take a moment to thank andy or for being my technical support. He left a comment saying we can’t hear you. I’m assuming you can hear me now. So I’m going to keep talking if not a, I’m sure Andy will let me know the next question. There’s a lot of, uh, this in the nimsy 100. There are at least the largest lsps in in the world, but there’s many, many, many more smaller lsps. I’m paraphrasing here. Um, what advice would you have for the small to medium size lsps that want to get onto the top 100 lists for next year?
Renato: Both of you want to take a stab. I can make some comments on the right sector. Life Sciences, which is exploding. The amount of clinical research in the United States, for example, in the last five years, has increased student half times a or video games growing very fast or immediate localization. Being in the right sector is important. Concentrating on a large corporate clients and large markets is important.
Kostya: We’ve seen that the long tail companies, they don’t have this growth potential. Even if they market to a thousand small clients, one big client is more important than a hundred and 50 or 200 of small ones. And it’s also a, um, sometimes more interesting to work for the big client with a huge global challenge. Then, uh, then then then going after so many a translation sofa, a passport, so, or a private documents for, for individuals. So that’s sits sales, large corporate customers, a stain, interesting for the enterprise, developing new offerings, maybe better service than the larger competitors, uh, be unique, uh, is important and focus on the fertile ground.
Renato: Yes, I would add that and I would reinforce what was said, the constant by saying that a three comments, number one, sales, sales, sales, the only way that we’re going to grow is by adding sales salespeople. Uh, I, I joke that in many years in this industry, the biggest learning that I’ve had is that a companies with the biggest sales forces have the highest rate. So there is a direct correlation between sales and revenue. Uh, and a quick parenthesis here, we can help you with that. The next comment that I was going to make is that, uh, regarding the, the, the segments look at what’s going on in the economy as a whole because, uh, the real opportunities are going to be happening in segments that we don’t even know exist. And they might not even exist today yet, but they’re going to be big tomorrow.
Renato: I, I remember when I had my own honesty, I don’t know, 30 years ago the biggest technology advanced was advanced super conductive ceramics and all of a sudden for about two years I had a lot of translation in separate conducted ceramics and which made me grow significantly. It’s a, it was an area where there was no vocabulary, no terminology, nothing was established. It was a completely new market. So look for those niche markets where you can be the biggest expert in that space. And the other thing, I’m going back to the original question of talking about the smaller Msps for this research, we have identified 170 companies around the world that have more than 10. We have around $10,000,000,000 in revenue or more. And um, we could only fit the top $100 a, a lot of space for companies to grow to this, to this level. And I suspect that next year when we come out with our ranking, we’re going to have a little, uh, go to have changed as we already know that the MS is a Norwegian company that was already acquired by semantics. So there is a spot that was open and this companies that were in the bottom are going to come up. So keep going, keep trying a inward keep communicating. We’re looking at your growth and we’re, we’re here to help.
Tucker: One more question here for you guys, and you’re not going to be surprised. You should know this one was coming. What role is machine learning? Artificial intelligence and automation playing in the language services markets?
Kostya: I’ll take it. Okay. Please. Well taken is, it can be everything you say, language, Ai, you have to get out the big gust interested, even if it’s not ai in the background, a similar language Ui is the catchphrase that, uh, makes them people want to go to a presentation from, listened to you. Uh, the, the, the second is a force optimization and the arts companies will be developing various solutions and are developing various systems based on the machine during, uh, one of them, for example, was a pricing engine which will allow an Lsp. It’s who offer a file over rates. So the Tuesday or the suppliers, depending on waves in supply and demand. Uh, there could be a machine learning component for workflow, let’s say, or your, uh, your projects is running late, so the robots will decide to skip the review phase because you need to get our content translated earlier so they will cut into the project management jobs from the tms. So, uh, two things, I can be a conversation opener and more optimization, squeezing out for more efficiency, improving margins and firing or letting go or transforming project managers and for salespeople or engineers that will set up to Michigan component for the client and then just oversee what’s going on.
Renato: Yes, I agree with everything you said. I would add a couple of things.
Renato: I don’t see this as a threat. I see this as an opportunity. Machine translation is a reality. Uh, it’s already, it already translates in one day more than all of the humans translate in one year in all languages. It’s, it’s amazing. We, I recently facebook last week released the members of translations that they’re handling on a daily basis and it’s in the billions of words everyday. So, um, it’s not new. It’s something that has been around over 10 years and, uh, it, if you are an lsp and your not using machine translation, if you’re talking about confidentiality, if you’re talking about risks of machine translation, you’re behind the curve. It’s a reality. It should be a service that is in your stack and you need to know how to use it to service your customers. It’s an expert. I’m the other comment is that, um, it has a role.
Renato: Artificial intelligence and machine translation have an machine learning, have a role in our business the same way that it has in every other business. This is the type of technology that is affecting everything from the car you drive from or if you’re going to be driving cars from the way you buy airplane tickets to the way you search for content, you are exposed and you’re working with artificial intelligence and machine translation and machine learning every day without knowing a machine learning has been part of your, uh, health diagnostic for at least 20 years. And it’s just come up as something new, but it’s not necessarily anything new. Again, small plug listened to globally speaking, radio podcast 20 when we talked about a bet that topic and the final comment that I was going to make is that I’m reinforcing what you just said. I think the for, for, for the industry, the most important role of this new approaches to technology is in the process.
Renato: It’s not so much in the language part, it’s in the process, project management, vendor management and sales, uh, activities in the company. Dr And I have written a book called the general theory of the translation company. A strongly recommend you look at it on Amazon and we talk about that this is a business where any technology only makes a difference in the areas that create value for the, the client. And these are a project management, vendor management and sales. This is where you need to think about how it’s going to increase your productivity and profit. The industry is not going away. We, as I mentioned in, in the conclusions, it’s a growth market. It’s going to continue to be a growth market and the way we interact with this look at these technologies as multipliers and as an augmentation possibility instead of a threat.
Tucker: Right. And follow up question from facebook, from the. Lori, I think we answered your first question, Lori, that follow up question would be, um, do you think Amazon translate will near ai solutions of Google and Microsoft? So do you think Amazon’s going to be able to contend with Google and Microsoft and the machine translation in the AI space?
Renato: Well, I’ll, I’ll take this quickly. Yes. They have a very solid team behind it. Um, they, they have acquired. Amazon has a new Israeli based company with a lot of uh, uh, academic background from Carnegie Mellon mds they have. But, uh, keeping mind. The beauty of machine translation in artificial intelligence is that all of these technologies have been deployed in open source and free access environments. So if you have the right talent, if you know how to use programming helps you use the sandboxes that Amazon, facebook, Google has put out. And I hear that apple is coming out with a solution also. Um, you can take advantage of this benefit from this. Amazon, for example, has a free solution for transcription in nine languages. You could theoretically a read the translation, a translated in my voice and have it transcribed using artificial intelligence, and that’s a way that you could incorporate it into your process. This is just a crazy idea that I have right now making it up as we go. I think, uh, how are we on time?
Tucker: I think I’m just gonna. Turn it over to standard to close us out. Thank you again everybody for your patients. This is our first webinar. We’re very excited about this. I’m a felon. If you found us on Youtube, congratulations. You’re smarter than most because confusion there, so excellent work on that. If you found us on facebook while you’re there, like, and subscribe and Sandra, take it away. Sandra.
Renato: No music.
Sandra: There you go. Technicalities. Sorry. Thank you very much for Tucker or an athletic coach there for the presentation and the questions. Guys, thank you to all the over 200 people who joined us today, our next webinar translation management system. It’s a comparison, isn’t hers the 24th of May. At the same time, most of the day it docker and Costa. We’ll take a. we’ll take a look at it, 10 popular translation management systems and compare them step by step by functionality they offer. So don’t miss it. Sign up today. Our very last webinar will be right now a inbound marketing for lsps. That will be on the 14th of July and we’ll take a look at lsb campaigns and processes to develop content and get the most out of it with marketing optimization tools. A guy’s name’s Jason Marketing Research and Ankle Sultan Company. So if you would like to hear about our services, please don’t hesitate to contact us in the name of Nancy and everybody who worked for EMC. Uh, thank you. Good at Ziva everybody, the any sort of mine. Thank you very much. Goodbye.

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