What is a Translation Management System? Our Guide to Localization Systems.

Cofounded by Andrzej Nedoma, XTRF was introduced as one of the very first commercial-class systems for translation management available at that time to a broad public in a Software-as-a-Service (SaaS) model.

This innovative approach revolutionized the way translation agencies managed their projects and addressed many of the challenges that were inherent in manual processes.

The emergence of XTRF changed the landscape by offering language service providers a comprehensive, user-friendly, and scalable solution specifically designed for translation agencies, and very soon, it took the market by storm.

One of the key features that set XTRF apart from other early translation management solutions was its SaaS model.

This made the translation management platform more accessible and cost-effective, allowing even small and medium-sized agencies to benefit from the advanced features and automation capabilities offered by a TMS.

As Nedoma once told XTRF, “Back in 2010, the language service providers were entranced when we first showed them XTRF. It was a groundbreaking piece of technology for them.”

Before 2010, Andrzej and his father co-owned a translation agency, working together to grow their business. However, their efforts to scale the company were hindered by rising operational costs. Additionally, the persistent pressure from clients to lower costs revealed that the traditional methods of managing translation workflows were flawed.

According to IDC research, companies lose 20% to 30% of their revenue to inefficiencies every year.

At this point, he realized that he needed to find a way to expedite translation management, which would ultimately enhance his company’s profitability.

“We all relied on Excel spreadsheets to track projects, and it was tedious. In our discussions with numerous translation company owners across Europe, we learned that they all needed a specialized management system. This finding suggested that we had uncovered a fascinating market niche,” said Nedoma.

He then added, “Back in 2010, some LSPs had their custom-built management systems, but they were limited to basic data storage functionalities — none of the bells and whistles that we have today.”

As he noticed a significant gap between the technological stack available to the language industry and the industry’s needs, he decided to establish XTRF and offer the first easily accessible translation business management system to the general public.

Over the past decade, translation management systems such as XTM.Cloud have continued to evolve, incorporating new technologies and features to better serve the needs of translation agencies and their clients. Some advancements in modern TMSs that were not present in earlier versions include:

• Cloud-based workspace, allowing translation teams to access project information and collaborate from anywhere in the world.
• Advanced reporting and analytics, providing insights into project performances and helping translation agencies make data-driven decisions.
• Artificial intelligence, improves translation and management efficiency by automating tasks like quality assurance checks or work assignments.
• Integration with third-party applications, such as customer relationship management (CRM) systems and enterprise resource planning (ERP) software.

While all systems share some key functionalities, they focus on different aspects and offer various sets of tools. The translation management system (TMS) market has evolved since these systems were first introduced.

Back in 2010, the distinction was quite simple — translation management aided project managers in coordinating ongoing tasks, while CAT tools catered to translators.

As time went by, CAT tools gained popularity and began to evolve, introducing features that were previously exclusive to translation management systems. This gradual shift positioned them within the translation management suite. Meanwhile, TMS tools also underwent significant upgrades, incorporating more advanced tools for managing a translation business.

Eventually, the former evolved into translation management systems (TMS), while the latter became known as a translation business management system (TBMS).

Computer-assisted translation (CAT) tools help your vendors translate more efficiently and ensure greater consistency. They do this through glossaries or term bases and translation memories – which are like databases of previous translations. All TMSs offer some sort of CAT tool functionality. Seeing the demand for translation project management functionalities increase, many CAT tool providers have added light-touch translation project management, invoicing, and reporting features to their systems. Some examples include XTM Cloud, SDL Trados, and memoQ, which are now referred to as translation management systems, in contrast to translation business management systems, which we’ll delve into next, and which often connect with one or multiple CAT tools.

A central hub for localization provides you with a systematic and scalable approach to content globalization. By using a TMS, you can achieve significant and proven gains and savings, including:

Leveraging existing translated assets means the same content is never translated twice. Using high-quality machine translation means that linguists only have to focus on ensuring that the translated content meets the quality standards

Combining the automation of manual tasks and leveraging existing translations connected with machine translation means that content can be localized much more quickly and efficiently without compromising quality. This allows companies to publish content on time and maintain their competitive advantage in global markets.

Thanks to centralized language assets available to all linguists, the quality of translations increases considerably, and inconsistencies are removed, enabling companies to maintain their brand tone and voice across their global markets. With a TMS’s automated workflows, the localization process becomes much more efficient, allowing companies to more than double their localized output without requiring additional resources.

A translation management system can provide qualitative and quantitative granular data from all actions in the localization process at a glance, enabling you to make smart, data-driven decisions and take your localization program to the next level.

A TMS is a cloud-based translation software, which means it can be accessed from anywhere in the world, regardless of the device or operating system. This removes any accessibility issues by users, facilitates connectivity with other cloud-based software, and contributes to everyone involved in the process working together on the same platform.

Control access to content through robust security settings and have full visibility over all actions and who performed them at any step of the localization project. A TMS also provides enhanced security features such as private clouds, which are cloud-based servers used only by a single company, giving you full control over where your data is stored and hosted.

Most systems for translation management are vendor-agnostic, which means that as the owner, you have the freedom to choose the fastest, most skilled, and cost-effective providers for any given project who can use the TMS. Increase the quality of your content by having a centralized localization ecosystem in which all your vendors can work on the same platform.

Utilize a translation management system to ensure your brand speaks with one voice across the globe. It’s essential for keeping your messaging consistent across all languages, reinforcing your brand’s identity and trust with international audiences.

A TMS is your partner in delivering translations that are not only accurate but also of the highest quality, ensuring your message is perfectly understood, no matter the language.

With a system for translation management, create experiences that resonate locally in every market. It’s about offering content that’s not just translated but culturally adapted, making every interaction with your brand feel native to users worldwide.

There are many systems for translation management available on the market, but not all of them have the same features. Therefore, you should ask a few questions before making your choice.

The best TMS for you can support not just your present needs but also your future ones.

One of the most important aspects to consider when choosing a system for translation management is that it can seamlessly incorporate and support not just your needs of today but also those of tomorrow. Future-proofing your localization program starts with making the right choice of localization technology and having one which can grow with you is a big step towards ensuring your localization success in the long term.