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Monday, May 31, 2010

Admerix Case Study: Who is really working on your projects?

Assigning projects to a local middleman vs. sourcing directly

“Lowering the cost of translators has the greatest potential for increasing a company's margins and is an inevitable pressure for U.S.-based companies desiring cheaper and cheaper outsourcing as every penny saved goes directly to the bottom line."

The Situation/Problem

An ERP software company was working with a major localization firm in the U.S. to handle their projects. The U.S.-based localization company touts their leading role in the industry along with a workflow process system and translation memory tools.

However, the ERP software company soon realized their chosen company, despite their marketing assurances, was merely outsourcing to the cheapest overseas supplier. The software company had experienced endless communication hassles and problems getting quick updates and feedback across different time zones. Conference calls with the team doing their project is not possible since their chosen vendor wanted to maintain the illusion that they were doing the project.

Claims of in-house linguists and ISO certification turned out to have no impact on the work as the projects were being farmed out to the lowest bidders. The software firm suspected that going through a middleman in the U.S. was not adding value to their localization projects.

It is inevitable that companies a localization buyer deals with in the U.S. or Europe are simply subcontracting overseas. It is simply not economically viable for these companies to do the bulk of their work with in-house linguists and engineers in an expensive location.

Some U.S.-based localization companies have attempted to address this by opening overseas branches, but these are merely local outsourcing wings whose major function is to negotiate the very lowest prices from local resources.

Since lowering the cost of translation has the greatest potential for increasing a company’s margins, it is inevitable for U.S.-based companies to push for cheaper and cheaper outsourcing as every penny saved goes directly to the bottom line.

How Admerix solved the problem

Clearly this situation is not advantageous for the client. Subcontracting is fine if you are getting the service and price you need, but simply handing off your critical projects to a U.S.-based localization firm which turns out to be nothing more than an outsourcer only adds layers of cost and miscommunication.

Based in stable and transparent Singapore, Admerix was contracted by the software firm that realized the need to get in closer contact with the experts actually doing their projects.

After a series of conference calls, the software company decided to work directly with Admerix and were assured by being able to directly communicate with our project managers and get feedback direct from the project floor which was crucial for their technical ERP software applications.

What this means for you

Each year, more and more companies based in the U.S. and Europe are insisting on working directly with the teams that are doing their work as opposed to local middlemen.

If you are hearing, “I’ll check on that and get back to you..." every time you ask a question of your supplier, you can bet that you are dealing with nothing more than a middleman with little localization expertise.

Working directly with Admerix can have many benefits

* Enjoy a direct line of communication with the actual people working on your projects.

* Direct savings on your project can be extraordinary—projects can cost 30% less than working with a U.S. based outsourcer.

* Deal directly with veteran localization project managers—as opposed to inexperienced project managers favored by localization firms based in expensive western nations where labor costs are the greatest expense.

Have questions? We welcome your feedback and look forward to working with you and troubleshooting your problems.

Alex Johnson
Production Manager

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