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The Total Economic Impactâ„¢ of TransPerfect GlobalLink...Product Suite. The purpose of...
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A Forrester Total Economic Impact™
Study Commissioned By TransPerfect
April 2017
The Total Economic Impact™ of TransPerfect’s GlobalLink Product Suite Cost Savings And Business Benefits Enabled By GlobalLink
Table Of Contents Executive Summary 1
Key Findings 1
TEI Framework And Methodology 3
The GlobalLink Customer Journey 4
Interviewed Organization 4
Key Challenges 4
Solution Requirements 5
Key Results 5
Financial Analysis 7
Benefit 1: Productivity Gains—Improved Efficiency Of The Website And Mobile App Translation Process 7
Benefit 2: Translation Cost Savings 8
Benefit 3: Web Content Translation And Integration Savings 9
Unquantified Benefits 10
Flexibility 10
Cost 1: Content Translation Costs And Access To The GlobalLink Platform 12
Cost 2: Integration Costs 12
Financial Summary 14
TransPerfect GlobalLink Overview 15
Appendix A: Total Economic Impact 20
Project Director:
Liz Witherspoon
April 2017
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1 | The Total Economic Impact™ of TransPerfect GlobalLink
Executive Summary
TransPerfect commissioned Forrester Consulting to conduct a Total
Economic Impact™ (TEI) study and examine the potential return on
investment (ROI) enterprises may realize by deploying the GlobalLink
Product Suite. The purpose of this study is to provide readers with a
framework to evaluate the potential financial impact of GlobalLink on their
organizations to bring efficiency and consistency to their translation
processes.
To better understand the benefits, costs, and risks associated with a
GlobalLink implementation, Forrester interviewed a large pharmaceutical
company with multiple years of experience using the platform. The
GlobalLink Product Suite automates the management of localization
processes and resources and seamlessly integrates with client back-end
systems like content/document management, eCommerce, product
information management (PIM), digital marketing, or databases.
Furthermore, it has built-in content workflow so that the organization can
move through the translation process more efficiently. This organization
specifically chose the platform because of its website localization and
mobile app capabilities and the integration with its Sitecore web content
management system.
Prior to deploying GlobalLink, the customer used email and FTP servers to
send requests for translations and to receive the files once they had been
translated for review. However, this process led to many inefficiencies,
including version control issues and inefficient communications around the
translation process. This process typically involved three stakeholders—
two project managers and a translation specialist. When the translations
manager from a large pharmaceutical company was tasked with
translating a customer-facing medical information website into nine
languages within a year, it was clear that the traditional translation
approach would not work. With GlobalLink, the translations manager could
manage the translation of thousands of pages of content—including
interactive content such as videos, self-assessments, and calculators—
through one central portal. Said one IT project manager: “This is the first
time we’ve done something of this scale—translating thousands of pages
of content into nine languages simultaneously. GlobalLink takes a huge
management burden off of me. There would be no way that I could do it
all—it would be impossible for one person to manage it without this
platform.”
Key Findings
Quantified benefits. The interviewed organization experienced the
following risk-adjusted quantified benefits:
› Productivity gains due to improved efficiency of the website and
mobile app translation process. GlobalLink improved the efficiency of
the website translation process by providing a centralized online system
to manage and communicate around the translation process.
Furthermore, it has process workflows built into the platform so that
approvals can be automated. Without the technology, the organization
would have had to hire an additional headcount and spend an average
of 20 hours more per project managing the process.
Benefits And Costs
Translation time savings:
$1.4 million
Integration time savings:
702 hours
Translation cost savings:
$955,800
2 | The Total Economic Impact™ of TransPerfect GlobalLink
› Translation cost savings of $955,800. Translation memory is a central
piece to any localization suite. It enables the company to reduce the
costs of translations by leveraging content that had already been
translated and approved in the past. Depending on the language and the
type and nature of the source content, the interviewed organization was
able to leverage about 50% of its existing content for future translations.
› Web content integration savings. Because of the integration between
GlobalLink and Sitecore, the organization was able to automatically load
the nine translated languages with minimal technical intervention. This
led to significant cost and time savings for the project, averaging about
78 hours of reduced manual integration work for each of the nine
translated websites.
Costs. The interviewed organization experienced the following risk-
adjusted costs:
› Document translation costs and access to the GlobalLink platform.
For each project, the organization paid TransPerfect for the localization
of the content, including web content pages and multimedia content.
These costs also include user access to the platform.
› Integration adaptor costs. These costs were paid to TransPerfect and
include configuring the Sitecore adaptor to manage the translations of
source site content, configuring and testing GlobalLink workflows to
accept translation requests from the Sitecore adaptor and return
translated content, and training end users.
Forrester’s interview with an existing customer and subsequent financial
analysis found that the interviewed organization experienced benefits of
$2.3 million over three years versus costs of $1.05 million, adding up to a
net present value (NPV) of $1.19 million and an ROI of 113%.
$1.2M
$818.7K
$270.4K
Productivity gains -improved efficiency
of web site andmobile app
translation process
Translation costsavings
Web contenttranslation and
integration savings
Benefits Present Value (Three-Year)
ROI 113%
Benefits PV $2.3 million
NPV $1.2 million
3 | The Total Economic Impact™ of TransPerfect GlobalLink
TEI Framework And Methodology
From the information provided in the interview, Forrester has constructed a
Total Economic Impact™ (TEI) framework for those organizations
considering implementing GlobalLink.
The objective of the framework is to identify the cost, benefit, flexibility, and
risk factors that affect the investment decision. Forrester took a multistep
approach to evaluate the impact that GlobalLink can have on an
organization:
DUE DILIGENCE Interviewed TransPerfect stakeholders and Forrester analysts to gather data relative to GlobalLink.
CUSTOMER INTERVIEW Interviewed one organization using GlobalLink to obtain data with respect to costs, benefits, and risks.
FINANCIAL MODEL FRAMEWORK Constructed a financial model representative of the interview using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewed organization.
CASE STUDY Employed four fundamental elements of TEI in modeling GlobalLink’s impact: benefits, costs, flexibility, and risks. Given the increasing sophistication that enterprises have regarding ROI analyses related to IT investments, Forrester’s TEI methodology serves to provide a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
The TEI methodology
helps companies
demonstrate, justify,
and realize the
tangible value of IT
initiatives to both
senior management
and other key
business
stakeholders.
DISCLOSURES
Readers should be aware of the following:
This study is commissioned by TransPerfect and delivered by Forrester
Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other
organizations will receive. Forrester strongly advises that readers use their own
estimates within the framework provided in the report to determine the
appropriateness of an investment in GlobalLink.
TransPerfect reviewed and provided feedback to Forrester, but Forrester
maintains editorial control over the study and its findings and does not accept
changes to the study that contradict Forrester’s findings or obscure the
meaning of the study.
TransPerfect provided the customer name for the interview but did not
participate in the interview.
4 | The Total Economic Impact™ of TransPerfect GlobalLink
The GlobalLink Customer Journey
BEFORE AND AFTER THE GLOBALLINK INVESTMENT
Interviewed Organization
For this study, Forrester conducted an interview with the translations
manager from a large pharmaceutical organization. The company is one
of TransPerfect’s largest customers and spends around $12 million
annually on translation services. The partnership is a critical one
because the efficient and accurate translation of content is crucial for this
organization’s brand reputation and risk avoidance for its clinical trials of
drugs:
› The organization is an international developer, manufacturer, and
distributor of pharmaceuticals. It has operations and employees in 30
countries and requires extensive translation services for internal and
external content.
› The organization is in a highly regulated industry and requires
document translation services, website localization, and linguistic
validation for its corporate services, research division, manufacturing,
and marketing business units.
› The organization has an educational website that involves thousands
of pages of content, including web pages, photos, videos, quizzes,
calculators, and self-assessment tools.
Key Challenges
The translation manager tasked with translating a health education website
into nine languages came into the role knowing that a traditional approach
to translation management would not suffice. The health education
website, a popular resource for consumers and medical professionals,
consisted of thousands of web pages, images, videos, and interactive tools
such as self-assessments. Furthermore, it had a corresponding mobile
app. The enormity of translating thousands of web pages simultaneously
into nine languages in a short timeline (under a year) was not lost on this
experienced translations manager who had worked at other global
organizations and had managed the translation process with different
providers. She immediately turned to GlobalLink as the answer for
managing this process and became an early adopter and power user of
the software in her organization.
The goals of this project included:
› Manage the translation of a website that used to be two separate
printed books into nine languages.
› Increase web traffic and brand awareness for the organization through
increased reach to countries outside of the United States.
› Centralize translation services to one vendor to benefit from the cost
savings of repeat content and the consistency of the delivery of
translations.
› Reduce the risks associated with translating medical content that can
easily be misrepresented if translated in a haphazard way without
regard for linguistic variation.
“We moved from emailing to
the GlobalLink platform. An
email inbox is a closet — it
became hard to find and
manage translations and it’s
no way to work. Now we have
a portal to go to where all
projects are quoted, stored,
and returned — a safe haven
for translations. It is very
valuable to me.”
Translation manager,
pharmaceutical company
5 | The Total Economic Impact™ of TransPerfect GlobalLink
Solution Requirements
The organization selected GlobalLink for its ability to integrate
seamlessly with its web content management system, Sitecore, and its
online translation management platform, in order to reduce the time to
manage the translation process. Furthermore, the translation capabilities
that extended to interactive and visual content, along with mobile apps,
was a key reason for selecting TransPerfect as a partner:
› The pharmaceutical company began working with TransPerfect in 2007
for transactional translation. In 2012, TransPerfect was awarded
“preferred vendor status” with the pharmaceutical company.
› The initial translation work originated from the human resources
department in the corporate services division to get consistent
information to all employees in 30 countries.
› As TransPerfect began working with the company as a preferred
vendor, the organization began to consolidate from 100 translation
vendors down to one.
› Currently, 25% of the $12 million in annual translation spending comes
from corporate services (HR, L&D [training], compliance, ethics, IT, and
communications). Fifty percent originates from the research division in
support of clinical studies, R&D, patient recruitment, global safety and
pharmaceutical vigilance, and scientific, regulatory, and medical affairs.
The other 25% comes from the manufacturing and human health
division that creates the sales and promotional materials for the
company.
› Accurate and linguistically correct translations are a critical part of the
translation process for this organization. The organization is in a highly
regulated industry, and its clinical trials and customer-facing material
must be accurate to generate proper outcomes.
Key Results
The interview revealed that key results from the GlobalLink investment
include:
› GlobalLink streamlined the translation management process. The
most significant benefit experienced by the pharmaceutical
organization was the ability to centralize the translation management
process within one platform, bringing together the TransPerfect project
manager, the key client stakeholder, and the local language
translations experts. This enabled one licensing manager to do the
work that it would have taken at least two to three full-time resources to
manage without the platform. By submitting projects through
GlobalLink, the project manager was able to avoid email
communications, project status update check-ins, and version control
management.
› The organization experienced general translation cost savings
due to translation memory. The interviewed organization, under its
global contract, was able to save on translation costs because of the
capability of translation memory. After a segment of text, phrase, or
group of words is translated, it is then stored in translation memory to
be leveraged for future projects. The translation of the company’s
“The benefit of this portal is
that it’s a one-stop shop for
submitting jobs, reviewing
quotes, and keeping it very
organized. There’s also a
progress bar that tells you
how far along things are. It
gives me a quick eyeball on
how things are happening.
There is never a problem I
don’t hear about. It’s such a
nice, easy-to-use interface —
very fitting and smartly
designed. When a job is
ready and a file is done, the
window slides down and
drops, like a present is
delivered. It gives me a small
pleasure.” Translations manager, pharmaceutical company
6 | The Total Economic Impact™ of TransPerfect GlobalLink
educational website into nine languages benefited from this translation
memory, yielding thousands of dollars of savings.
› The organization was able to save technical resources and time
during web content integration. The interviewed organization
needed to extract, translate, and replace web content with minimal
human intervention. Although some manual adjustments were still
required for languages that have special characters or different lengths
of words, the organization was able to save technical web content
management resources because of GlobalLink’s out-of-the-box
integration with Sitecore.
› The organization reduced its risk and exposure to errors related
to translation. This organization, a highly reputable and visible
pharmaceutical company that is publicly traded, operates in a highly
regulated industry. TransPerfect’s linguistic validation services help
mitigate the risk associated with translating medical terminology and
concepts into different languages. Furthermore, the centralization of
translated content into one vendor and platform enabled the
organization to meet local standards while ensuring a global mindset.
› The organization increased web traffic to its website as a result of
the translations. An ultimate goal of this organization is to increase
global web traffic to its site. While this both provides education and
promotes goodwill among the medical and consumer communities, it
also raises brand awareness for the pharmaceutical company and
improves its brand reputation. The more quickly and accurately the
organization can have its website translated, the faster it increases
brand awareness around the globe.
7 | The Total Economic Impact™ of TransPerfect GlobalLink
52%three-year benefit PV
$1.2 million
Financial Analysis
QUANTIFIED BENEFIT AND COST DATA
Benefit 1: Productivity Gains—Improved Efficiency
Of The Website And Mobile App Translation
Process
GlobalLink improved the efficiency of the website translation process
by providing a centralized online system to manage and communicate
around the translation process. Furthermore, it has built-in workflow
management so that approvals can be automated. Prior to GlobalLink,
the organization relied on email exchanges among multiple parties
involved in the translation process (including project managers from both
companies, translators, and approvers). The interviewed customer feels
strongly that without GlobalLink, the enormous effort of translating nine
websites simultaneously would not have been possible. The benefits of
the GlobalLink Product Suite include the reduction of manual tasks as
involved in the extraction and re-importation of content, versioning, and
testing. Project management and revisions are also simplified. And this
becomes even more important with the scale of the project—translating
thousands of pages of web content, interactive content, videos, images,
and a mobile app into nine languages. But the tight integration of the
localization suite with back-end systems such as the content
management repositories and the introduction of well-defined workflows
either eliminated or streamlined these manual tasks.
Following the GlobalLink implementation, the organization reduced the
average hours of effort per translation project by 20 hours. Because
projects range in complexity and length, 20 hours was used as an
average. In the first year of the website localization effort, the
organization estimates that it submitted 250 projects. A project typically
consists of many pages of content. At a fully burdened average annual
salary of $100,000 for a translations project manager, the organization
saved $720,000 in the first year due to efficiency gains in the translation
process. Furthermore, the organization indicated that it would not have
been possible for the small staff to manage the translation process
without GlobalLink. The model assumes a headcount cost savings of one
project manager per year due to the efficiencies gained by using the tool.
As a result, the interviewed organization saved $820,000 in Year 1,
$244,000 in Year 2, and $287,200 in Year 3. The total benefit resulting
from productivity gains over the three years was $1,351,200.
The table above shows the total of all benefits across the areas listed below, as well as present values (PVs) discounted at 10%. Over three years, the interviewed organization expects risk-adjusted total benefits to be a PV of more than $2.3 million.
Total Benefits
REF. BENEFIT YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE
Atr Productivity gains — improved efficiency of website and mobile app translation process
$820,000 $244,000 $287,200 $1,351,200 $1,162,885
Btr Translation cost savings $540,000 $205,200 $210,600 $955,800 $818,723
Ctr Web content translation and integration savings
$158,696 $85,109 $74,283 $318,087 $270,417
Total benefits (risk-adjusted) $1,518,696 $534,309 $572,083 $2,625,087 $2,252,024
GlobalLink removes 20 hours of inefficiency from every translation project
8 | The Total Economic Impact™ of TransPerfect GlobalLink
36%
three-year benefit PV
$818,723
Benefit 2: Translation Cost Savings
The use of translation memory allows organizations to leverage content
that had already been translated and approved in the past. When the
organization submits new content for translation, the translation memory
feature can detect words, segments, sentences, or even whole
paragraphs that have previously been translated (“gold” match) or that
are very similar to approved text in the database (“fuzzy” match). In both
cases, it helps human translators reduce the amount of words that need
to be newly translated and ensure consistency across different
translations. As the translation costs are mostly a function of the number
of words to be translated, the utilization of translation memory can be
seen as direct cost savings. Words that fully or partially match a previous
translation still may have revision costs associated. In this analysis, we
conservatively estimate that for each word that was correctly matched,
the organization saves $0.15, whereas for a partial-matched word, the
company saves $0.075.
Assuming that the website has around 2,000 pages with an average of
400 words per page, the total number of words translated in Year 1 is 7.2
million. That number drops to around 2 million words in years 2 and 3 as
30% of the content is refreshed annually. Assuming that 40% of the
words can be perfectly matched for future translations, the organization
saves about $773,280 over three years with “gold” matches and
$182,520 over three years with “fuzzy” matches. Over three years, the
total benefit of translation cost savings was $955,800.
Productivity Gains — Improved Efficiency Of Website And Mobile App Translation Process
REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3
A1 Number of project managers involved in translation process
3 2 2
A2 Number of translations projects Assumes 30% new
content annually 250 75 98
A3 Efficiency savings per project Hours saved using
GlobalLink 20 20 20
A4 Fully loaded salary rate for project manager $100,000 $48 $48 $48
A5 Assumed headcount savings (core team) 1 project manager
hire avoided per year @ $100,000
$100,000 $100,000 $100,000
At Productivity gains — improved efficiency of website and mobile app translation process
(A1*A2*A3*A4)+A5
$820,000 $244,000 $287,200
Risk adjustment 0%
Atr Productivity gains — improved efficiency of website and mobile app translation process (risk-adjusted)
$820,000 $244,000 $287,200
Translation memory drives 36% of benefits
9 | The Total Economic Impact™ of TransPerfect GlobalLink
12%
three-year benefit PV
$270,417
Benefit 3: Web Content Translation And Integration
Savings
Because of the integration between GlobalLink and Sitecore, the
organization was able to automatically load the nine translated
languages with minimal technical intervention. TransPerfect has built
over 45 connectors to web content management and eCommerce
systems. It invests heavily in keeping this technology updated so that it
streamlines and shortens the time to update websites with localized
content. The integration with Sitecore led to significant cost and time
savings for the website localization project, averaging about 78 hours of
reduced technical integration work for each of the nine translated
websites. Without the Sitecore integration provided by TransPerfect, the
interviewed organization would have had to rely on web content
managers internally (or contracted externally) to ensure that the
translated content properly loads and displays on nine versions of the
website. Because each language is different in terms of the characters it
uses, the size of those characters, and the number of words required to
express a particular thought, the adaptation of content from English into
nine languages requires significant technical oversight. Other technical
and user interface decisions include: considering the display of content
(right-left or left-right layout), determining how special characters are
used and encoded, properly spacing the content depending on the
language, ensuring cultural sensitivity to the display of words and
images, and updating dates/currencies/calendaring functionalities that
are country-specific.
This model assumes that without the Sitecore integration, a web content
manager would have to spend about 80 hours—or two weeks of effort—
to integrate localized content and adjust it to display properly for the
localized languages. With the help of the GlobalLink integration, the
resource now spends about 2 hours adjusting the display to ensure that
the adaptor properly completed the work. Human intervention will always
be required in these cases because the adaptor cannot account for all
scenarios in which a localized website will need adjustment. In addition
to the adaptor, the organization experienced reduced costs around the
The GlobalLink
integration with Sitecore
saved the organization
78 hours for each of the
nine translated websites
Translation Cost Savings
REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3
B1 Assumed number of words for website translations
2,000 pages (with an average of 400 words per page) translated into 9 languages)
7,200,000 2,160,000 2,808,000
B2 Assumed percentage of "gold" words 40% B1*B2 2,880,000 864,000 1,123,200
B3 Assumed percentage of "fuzzy" words 20% B1*B3 1,440,000 432,000 561,600
B4 Assumed net cost savings per "gold" word $0.15 B2*B4 $432,000 $172,800 $168,480
B5 Assumed net cost savings per "fuzzy" word $0.075 B3*B5 $108,000 $32,400 $42,120
Bt Translation cost savings B4 + B5 $540,000 $205,200 $210,600
Risk adjustment 0%
Btr Translation cost savings (risk-adjusted) $540,000 $205,200 $210,600
10 | The Total Economic Impact™ of TransPerfect GlobalLink
translation of multimedia content. Because TransPerfect employs
graphic designers and multimedia designers, the interviewed
organization was able to avoid using an outside agency to get assistance
with translating interactive content such as videos, self-assessment
tools, and the mobile app. With an estimated 25% of its projects having
multimedia components, the company estimates that it avoids about
$2,000 per project because of the extensive resources provided by
TransPerfect. The total web content translation and integration cost
savings over three years was $318,087.
Unquantified Benefits
Increased Web Traffic. The interviewed organization said that the
rapid translation of the company’s website into nine languages
increased web traffic. However, the benefit was not calculated for this
study because the website’s primary purpose is educational rather
than promotional. This, in turn, increases the reach of the company’s
brand and improves brand reputation, as the content delivered on the
site is highly valued and viewed as a trusted resource by the medical
community and consumers around the world. This increase in brand
awareness and brand reputation could lead to additional financial
benefits as the pharmaceutical company brings its drugs to market in
new regions of the world.
Flexibility
The value of flexibility is clearly unique to each customer, and the
measure of its value varies from organization to organization. There
are multiple scenarios in which a customer might choose to implement
GlobalLink and later realize additional uses and business
opportunities. The organization heavily used GlobalLink for the
Increased web traffic
through translated web
content drives brand
awareness for the
organization.
Flexibility, as defined by TEI, represents an investment in additional capacity or capability that could be turned into business benefit for a future additional investment. This provides an organization with the "right" or the ability to engage in future initiatives but not the obligation to so.
Web Content Translation And Integration Savings
REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3
C1 Number of languages into which the website was translated
9
C2 Hours to integrate translated languages without TransPerfect connector
Maintenance hours in Year 2 & Year 3
80
C3 Hours to integrate translated languages after TransPerfect connector
2
C4 Fully loaded salary rate (IT) $100,000 $48
C5 Percentage of translations projects that are multimedia
25% 63 19 24
C6 Estimated cost savings per project from having multimedia resources available through TransPerfect
$2,000 $2,000 $2,000
Ct Web content translation and integration savings
(C1*(C2-C3)*C4)+(C5*C6)
$158,696 $85,109 $74,283
Risk adjustment 0%
Ctr Web content translation and integration savings (risk-adjusted)
$158,696 $85,109 $74,283
11 | The Total Economic Impact™ of TransPerfect GlobalLink
educational website group. This is only one instance of GlobalLink
across the organization. Overall, the organization has 600 GlobalLink
users. Those areas of the company also using the platform include
corporate services (HR, L&D [training], compliance, ethics, IT, and
communications); the research division; and the manufacturing and
human health division, which creates the sales and promotional
materials for the company. As other translation project managers begin
to use the platform more, the organization stands to gain even more from
its investment. Other benefits achieved through broader adoption would
include:
› The efficiency gains achieved through the review portal, which is
a way for people within the organization to review translated
content to see source and target side by side and add comments,
grade and score it, and improve the overall productivity of the
translation process. For example, when someone makes a change to
content within the review platform, the segment updated is changed
within translation memory and will be applied to future uses. It reduces
the time to update content and enforces consistency across the
organization. Also within the review portal environment, translation
reviewers can filter the translated content to view the net-new changes
and not spend time reviewing content that was already approved and
captured in translation memory. This reduces the time for internal
review by the internal language reviewers and subject matter experts.
› The benefit of the integration with Tableau, which is a report
portal that the organization can use to set up parameters to track
metrics around quality, performance against SLAs, and
translation memory savings. The organization can organize these
reports by language, department, market, and division. A business user
or power user who is supervising translation at an enterprise view can
see trends and gain business insights. The integration with Tableau
also centralizes and helps the organization analyze translation vendor
performance.
Flexibility would also be quantified when evaluated as part of a specific
project (described in more detail in Appendix A).
12 | The Total Economic Impact™ of TransPerfect GlobalLink
Cost 1: Content Translation Costs And Access To
The GlobalLink Platform
For each project, the organization paid TransPerfect for the
localization of the content, including web content pages and
multimedia content. Included in these costs was access to the
GlobalLink platform to manage the translation process. The
organization paid $1 million for the first year of website translation work
into nine languages. Twenty-five percent of this content was
multimedia, which was translated at a higher cost than web content. In
years 2 and 3, the organization only paid for the maintenance of that
content, which is estimated at 30% of the original content. The total
cost for content translation over three years was $1,172,500.
Cost 2: Integration Costs
The organization paid an integration adaptor fee for the API connector to
Sitecore. These costs were paid to TransPerfect and included configuring
the adaptor to manage the translations of source site content, configuring
and testing GlobalLink workflows to accept translation requests from the
Sitecore adaptor and return translated content, and training end users.
These fees are initial and do not recur in years 1 through 3.
Total Costs
The table above shows the total of all costs across the areas listed below, as well as present values (PVs) discounted at 10%. Over three years, the interviewed organization expects risk-adjusted total costs to be a PV of more than $1.05 million.
Content translation costs
and platform fees make
up the bulk of the costs.
REF. COST INITIAL YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE
Dtr Content translation costs $0 $1,000,000 $75,000 $97,500 $1,172,500 $1,044,328
Etr Integration adaptor costs $14,400 $0 $0 $0 $14,400 $14,400
Total costs (risk-adjusted) $14,400 $1,000,000 $75,000 $97,500 $1,186,900 $1,058,728
Content Translation Costs
REF. METRIC CALC. INITIAL YEAR 1 YEAR 2 YEAR 3
D1 Content translation and platform fees
$1,000,000
D2 Number of translation projects
75 98
D3 Average cost per project D2*D3 $1,000 $1,000
Dt Content translation costs
$1,000,000 $75,000 $97,500
Risk adjustment 0%
Dtr Content translation costs (risk-adjusted)
$0 $1,000,000 $75,000 $97,500
13 | The Total Economic Impact™ of TransPerfect GlobalLink
Integration Adaptor Costs
REF. METRIC CALC. INITIAL YEAR 1 YEAR 2 YEAR 3
E1 Initial setup fee for adaptor $14,400
Et Integration adaptor costs E1 $14,400 $0 $0 $0
Risk adjustment 0%
Etr Integration adaptor costs (risk-adjusted)
$14,400 $0 $0 $0
14 | The Total Economic Impact™ of TransPerfect GlobalLink
Financial Summary
CONSOLIDATED THREE-YEAR RISK-ADJUSTED METRICS
Cash Flow Chart (Risk-Adjusted)
-$1.5 M
-$1.0 M
-$0.5 M
$0.5 M
$1.0 M
$1.5 M
$2.0 M
Initial Year 1 Year 2 Year 3
Cashflows
Total costs
Total benefits
Cumulative net benefits
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI and NPV for the interviewed organization's investment. Forrester assumes a yearly discount rate of 10% for this
analysis.
These risk-adjusted ROI
and NPV are determined
by applying risk-
adjustment factors to the
unadjusted results in each
Benefit and Cost section.
Cash Flow Table (Risk-Adjusted)
INITIAL YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE
Total costs ($14,400) ($1,000,000) ($75,000) ($97,500) ($1,186,900) ($1,058,728)
Total benefits $0 $1,518,696 $534,309 $572,083 $2,625,087 $2,252,024
Net benefits ($14,400) $518,696 $459,309 $474,583 $1,438,187 $1,193,297
ROI 113%
15 | The Total Economic Impact™ of TransPerfect GlobalLink
TransPerfect GlobalLink Overview The following information is provided by TransPerfect. Forrester has not validated any claims and does not
endorse TransPerfect or its offerings.
16 | The Total Economic Impact™ of TransPerfect GlobalLink
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Appendix A: Total Economic Impact
Total Economic Impact is a methodology developed by Forrester
Research that enhances a company’s technology decision-making
processes and assists vendors in communicating the value proposition
of their products and services to clients. The TEI methodology helps
companies demonstrate, justify, and realize the tangible value of IT
initiatives to both senior management and other key business
stakeholders.
Total Economic Impact Approach
Benefits represent the value delivered to the business by the
product. The TEI methodology places equal weight on the
measure of benefits and the measure of costs, allowing for a
full examination of the effect of the technology on the entire
organization.
Costs consider all expenses necessary to deliver the
proposed value, or benefits, of the product. The cost category
within TEI captures incremental costs over the existing
environment for ongoing costs associated with the solution.
Flexibility represents the strategic value that can be
obtained for some future additional investment building on
top of the initial investment already made. Having the ability
to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates
given: 1) the likelihood that estimates will meet original
projections and 2) the likelihood that estimates will be
tracked over time. TEI risk factors are based on “triangular
distribution.”
The initial investment column contains costs incurred at “time 0” or at the
beginning of Year 1 that are not discounted. All other cash flows are discounted
using the discount rate at the end of the year. PV calculations are calculated for
each total cost and benefit estimate. NPV calculations in the summary tables are
the sum of the initial investment and the discounted cash flows in each year.
Sums and present value calculations of the Total Benefits, Total Costs, and
Cash Flow tables may not exactly add up, as some rounding may occur.
PRESENT VALUE (PV)
The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total NPV of cash flows.
NET PRESENT VALUE (NPV)
The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have higher NPVs.
RETURN ON INVESTMENT (ROI)
A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.
DISCOUNT RATE
The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.
PAYBACK PERIOD
The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.