Dollar Woes and the Translation Industry
by Lauren Nemec
The decreasing value of the Dollar against the Euro (currently $1.46 = €1) means that language service providers (LSPs) around the world are starting to make changes regarding how they buy and sell translations. Let's explore...
How translations are purchased:
Usally, most LSPs buy translations in the target language country in the local currency. So for a translation from English into German, the LSP would use a translator living and working in Germany and would pay that translator in Euro.
So what does this mean?
--If the LSP is based in Europe: The weakening dollar does not really affect this English to German purchase since the European LSP is probably buying and selling in Euro. However, if that European LSP wanted to do a translation from German to US English, the Dollar's exchange rate is making it cheaper and cheaper to buy translations into English from the United States, benefiting the LSP. Indeed, European LSPs are starting to take advantage of the weak dollar by buying translations even into European languages from U.S.-based translators.
--If the LSP is based in the United States: That German translation is becoming more and more expensive to purchase, which lowers margins if the LSP is unwilling to increase prices. But with the dollar continuing to weaken against the Euro, U.S.-based LSPs will have to consider charging higher rates or charging in Euro.
If you'd like to read more on this subject, Renato Beninatto of the Common Sense Advisory has posted on his organization's "Global Watchtower" blog two responses to this forex trend: "That Clinking, Clanking Sound of Money and its Impact on Translation" and "American LSPs Poised to Increase Rates for Translation Services".
Photo Credit: Joshua Velasquez
The decreasing value of the Dollar against the Euro (currently $1.46 = €1) means that language service providers (LSPs) around the world are starting to make changes regarding how they buy and sell translations. Let's explore...How translations are purchased:
Usally, most LSPs buy translations in the target language country in the local currency. So for a translation from English into German, the LSP would use a translator living and working in Germany and would pay that translator in Euro.
So what does this mean?
--If the LSP is based in Europe: The weakening dollar does not really affect this English to German purchase since the European LSP is probably buying and selling in Euro. However, if that European LSP wanted to do a translation from German to US English, the Dollar's exchange rate is making it cheaper and cheaper to buy translations into English from the United States, benefiting the LSP. Indeed, European LSPs are starting to take advantage of the weak dollar by buying translations even into European languages from U.S.-based translators.
--If the LSP is based in the United States: That German translation is becoming more and more expensive to purchase, which lowers margins if the LSP is unwilling to increase prices. But with the dollar continuing to weaken against the Euro, U.S.-based LSPs will have to consider charging higher rates or charging in Euro.
If you'd like to read more on this subject, Renato Beninatto of the Common Sense Advisory has posted on his organization's "Global Watchtower" blog two responses to this forex trend: "That Clinking, Clanking Sound of Money and its Impact on Translation" and "American LSPs Poised to Increase Rates for Translation Services".
Photo Credit: Joshua Velasquez
posted by Lauren Nemec at
9:25 AM
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home