Logrus has participated in Translation Agencies Virtual Conference by Proz.com on October 13, 2010. The participants shared their experience in developing localization services and discussed the latest trends and issues faced by companies.
Representing Logrus was its president Serge Gladkoff, who delivered a video presentation entitled, "Overcoming the Winner's Curse when buying and selling translation services through open market tenders and RFIs", focusing on the pricing policy in the translation services industry and the so-called "Winner's Curse" phenomenon. In a competitive bidding process, the client seeks to procure services at the lowest possible cost, while the winning bidder often accepts the assignment at a price that is below sustainability level, which in turn compromises the quality.
This issue elicited a lively response from the audience. Unlike translation quality or CAT technology, it has not been given due consideration heretofore in light of the extreme complexity of this subject. This phenomenon is governed by fairly sophisticated mathematical laws in what is seen as one of the most complex fields of mathematics. Meanwhile, it is shaping up as a major problem for modern markets, becoming ever more pronounced with the spread of the Internet, which affords clients vast access to service providers willing to participate in competitive bidding. Serge Gladkoff described the key aspects of this problem and highlighted the possible ways in which both clients and service providers can avoid losses attributable to flaws of the bidding process.
The presentation is available in the publications section of our website