Common Sense Advisory has released its annual ranking of the top language service providers (LSPs). The list, which is based on the 2007 fiscal year and has expanded from the top 20 companies to the top 25, includes L-3 Communications, SDL International (SDL), Lionbridge Technologies (LIOX), Xerox Global Services, Language Line Services, Transperfect/Translations.com, and Manpower Business Solutions. Overall, the LSPs in Common Sense Advisory’s Top 25 list averaged 26 percent growth over the previous year, creating a global industry total of US$12.1 billion dollars.
The total revenue accounted for by the top 25 LSPs has grown steadily since the research firm began tracking global language services industry revenue numbers in 2004. From 2004 to 2005, these leading LSPs grew slightly faster than Common Sense Advisory’s estimate of 7.5 percent (see “Ranking of Top 20 Translation Companies,” Mar06). Based on the trend-line over the last five years, Common Sense Advisory’s analysts predict that the market will reach US$24 billion by 2012, equating to a compound annual growth rate (CAGR) of 14.6 percent over the next five years.
“We can attribute some of this growth to foreign exchange issues, but the main driver was increased sales in an economic environment favorable to international trade and relations. LSPs are reaping the benefits of a more global economy and are growing despite indications of a recession in the United States,” explains Common Sense Advisory’s chief connector and report analyst, Renato Beninatto.
“Looking forward to next year, we expect more changes due to market consolidation, an increase in demand for language services to compete in a global economy, and adherence to the multilingual requirements in regulated industries,” notes Common Sense Advisory’s president and chief research officer, Don DePalma. The firm’s
“Ranking of Top 25 Translation Companies for 2007” is an update to the 2004, 2005, and 2006 rankings and is available for free access to the public at http://commonsenseadvisory.com/members/res_cgi.php/080528_QT_2008_top_25_lsps.php.