Companies in many industries are facing rising costs, inflation, high interest rates, and macroeconomic uncertainty. In such times, cost reduction becomes a priority, and areas considered “discretionary” — such as marketing, translation, and education — are often the first to be cut.
For example:
- A McKinsey study shows that in times of economic uncertainty, companies reduce marketing budgets by 8–20%.
- According to CSA Research, the language services market is experiencing a decline in revenues, as many organizations delay translations, waiting for economic stabilization.
On the other hand:
- A report shows that potential clients are much more likely to purchase from websites in their native language. For instance, “65% of respondents prefer content in their own language, even if the translation isn’t perfect,” and many say they won’t buy if the information isn’t available in their language.
- A CSA report highlights the positive impact on business growth for companies that increased their translation budgets.
Top 5 reasons why cutting the translation budget is not real cost-saving for companies operating in multiple markets
1. Loss of revenue opportunities
If you don’t communicate in the language of your external clients or partners, you miss business opportunities. Prospects prefer companies that speak their language. Studies show that companies investing in translation are significantly more likely to grow revenue. As mentioned above, the CSA report Translation at Fortune 500 Companies shows that companies increasing their translation budgets were 1.5x more likely to report revenue growth compared to those that didn’t.
2. Negative impact on brand image and trust
A poorly translated or non-localized message can come across as unprofessional — or even offensive. Low-quality translations can damage credibility and reputation, leading to additional recovery costs.
3. Hidden costs
If the translation isn’t done right the first time — ambiguous terminology, technical mistakes — you’ll need revisions or even legal corrections, which require time and additional costs. Fixing mistakes later is often more expensive.
4. Delayed market entry
Reducing translation may delay product launches, offers, or external partnerships. You miss the ideal moment in the market. For companies active across multiple markets, speed and accuracy in legal or commercial documents can make the difference between signing a deal or losing it.
5. Legal and compliance risks
Legal documents (sales agreements, partnership contracts, T\&Cs, etc.) poorly translated or done by someone without proper expertise may include invalid or ambiguous clauses under the target country’s law. This can lead to disputes, authority rejections, or penalties.
5 advantages for companies that continue to invest in foreign market communication
1. Access to new markets and business expansion
Companies that communicate effectively in the partner’s language can enter markets with less competition or where language barriers are high.
2. Customer/partner loyalty and satisfaction
A client or partner who receives clear, well-translated documents feels respected and confident — making the relationship more stable and long-term.
3. Competitive advantage
While others cut their translation budget and rely on automatic translations, companies maintaining quality stand out. The brand becomes synonymous with professionalism and attention to detail.
4. Long-term savings
Although it may seem costly to maintain a translation budget, it helps the company avoid legal disputes, additional later efforts, delays, and reduces the risk of fines or liabilities.
5. Flexibility and adaptability
Having documents translated by certified, specialized translators allows clear responses to partner requests, negotiations, contract updates, etc.
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In times when costs rise and profit pressure is high, cutting the translation budget may seem like a quick fix. But for companies operating in two or more markets, cutting translation buget is not real savings — it’s a limitation that reduces opportunities, increases risk, and damages credibility.
At Penini Translations, we understand budget concerns.
We offer alternative solutions to help you control costs:
- Translation planning and custom pricing packages
- Translation memory – identify, store, and reuse repetitive content to reduce cost and ensure communication consistency
- MTPE services (Machine Translation Post-Editing) – review, correct, and adapt AI-assisted translations
Want to continue growing in foreign markets without sacrificing quality or taking risks?
Let’s find the most efficient solution for your business — together!
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by e-mail: office@peniniglobal.com
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