How to Choose the Right Language Service Provider (and Red Flags to Watch For) 

Looking for a new language service provider (LSP) or translation agency? Then keep reading! We gathered feedback from localization experts and customer success managers, who have managed hundreds of translation clients over the past few years, to put together these recommendations for selecting a provider. 

Need quick advice? Download this practical checklist for some guidance in your decision-making process. 

Services provided by language service providers

The term language service provider is quite broad. It can refer to a multinational corporation, a small boutique agency, or even individual freelancers. 

The one thing they have in common, is that translations are at the heart of LSPs’ offerings. However, translation is just the “tip of the iceberg” in the service portfolio of such a provider. They may also provide a wide range of other language services such as interpreting, copywriting, and product localization for international markets.  

How to choose a language service provider

Here are the top 10 criteria you should think about when selecting a language service provider to work with.  

I. Language Offerings

First and foremost, an LSP should cover all the languages you need. Also, consider which languages might become relevant for translations in the future. Is your company planning to enter the Asian market next year? 

Exercise caution with less commonly requested languages like Arabic or Slovenian. Many translation agencies offer these languages but actually outsource the translation to a third party translation agency, which may result in subpar quality. If a particular language is crucial for you, ensure in advance that the service provider handles it in-house. 

II. Specialization 

Whether it’s FinTech or Healthcare, every industry has its own unique jargon. That’s why you should always entrust your translations to native-speaking experts in your field. 

Some agencies cast a wide net, advertising “translations for all industries”. The result is often disappointing: generic texts that offer little more quality than DeepL or Google Translate. 

Other LSPs are highly specialized, for instance in luxury brands, outdoor sports or EU organizations. Be sure to check if an LSP has successfully worked in your industry before committing to the partnership. Case studies are a great way to gain insight into the provider’s approach. 

You should also consider requesting translation samples for different types of texts. Your LSP might specialize in technical documentation for the automotive industry, but that doesn’t necessarily mean they can handle global marketing campaigns for this sector. 

Here’s an example of a case study for translations solutions: Milengo’s Translation Solutions for the Manufacturing Industry 

III. Scalability 

Companies grow. And your language service provider must be able to grow with you. 

Startups or rapidly expanding companies should consult their product and sales teams before choosing an LSP to forecast the expected translation volume for their business in the medium term. Next, they should determine if the language service provider can provide new languages and increase translation volumes without weeks of lead time, or if they will soon hit their capacity limits.  

Scalable LSPs boast extensive, long-maintained translator networks and standardized, automated translation management processes. This ensures ambitious large-scale projects stay on track and end in chaos. 

Read our Guide to Scaling Global Communication. 

IV. Technical Integration

While translation requires linguistic and cultural expertise, this is often not even the most important criterion when selecting an LSP. 

This is because when companies translate hundreds of thousands of words across various projects, translation project management must run smoothly on a technical level. Otherwise, delays occur, costs rise, and ultimately, the linguistic quality suffers. 

Ensure your LSP provides the following technical setup: 

• Powerful translation software: A translation management system (TMS) integrates project management, financial management, workflow automation, translation memory management, and more to centralize your work. However, be cautious: Some TMS solutions compromise on functionality, such as professional terminology management or effective quality assurance. It’s also important to note that some TMS’ are specifically designed for certain use cases like software localization. Here’s a comparison of popular software solutions in the market. 

• Customer portal: Your LSP should offer a portal for managing translations where clients can request translations with just a few clicks (Milengo, for example, uses LanguageDesk). Otherwise, countless emails and documents will need to be manually exchanged and tracked to process translations. 
• Managing your file formats: Complex file formats like JSON or XML can pose challenges when translating and reimporting content. Ideally, your LSP should have an experienced engineering team capable of handling these formats without issues related to layout or file structure. Even better, your language service provider should be able to export texts directly from your content management system via API or connector. 

V. Range of services

For complex projects like translating a designed print magazine or localizing a learning app with videos, you need a “Full-Service LSP” that offers additional language services beyond mere translation. 

Take a look at the following range of services and consider which ones you might need because not every LSP will meet all your requirements under one roof: 

• Building multilingual terminology 

• Desktop publishing 

• SEO marketing translations 

• Localized texts for advertising campaigns (transcreation) 

• Multimedia localization 

• Software localization 

• E-Learning localization 

• Self-service AI translations 

VI. Linguistic Quality 

We predict that despite the advancements in AI translators, translations will still require the expertise of human professionals even twenty years from now. 

Therefore, find out the following about your language service provider’s translator pool: 

• Required qualifications and professional experience 

• Continuous training and professional development 

• Quality assurance mechanisms (proofreading, editing, QA, etc.) 

• Certifications such as the quality standard ISO 5060 

Linguists should be specialized in both your industry and the specific type of text. A technical translator with a background in finance would likely produce awkward marketing copy despite their expertise. 

Finally, you should also ensure the expected translation quality by requesting a translation sample. The result should be reviewed by professionals, such as a technical writer or a content writer, rather than just someone with foreign language skills.  

It can also be beneficial to closely examine the LSP’s previous work in your industry. Ask for reference projects that the provider has completed in the past, such as the localization of a competitor’s website. 

VII. Price 

The cost of language services varies greatly and so does their level of professionalism. 

The first rule of thumb is: Do not blindly choose the cheapest offer. In the localization industry, there are a few bad apples that might try to sell you a barely edited machine translation, akin to Google Translate, at worst. 

Tip number two: Don’t settle for flat rates. Instead, request a detailed pricing matrix because professional translation rates typically vary based on the type of service (see “Service Spectrum”). 

Is your budget limited? Take advantage of the opportunity to inquire about volume discounts and AI-powered translation workflows that offer even better value for money. 

Get your personalized list of translation rates now

VIII. Customer service 

A language service provider does more than just deliver translations; they take the complexity out of translation setup and project management for you. 

The service quality of a provider is a reflection of their professionalism. The key indicators for this are: 

• Do you have a dedicated project manager available for questions and support? 

• Is project management available for each of your time zones? 

• Is there a seamless communication channel between translators and your reviewers? 

AI services like DeepL offer unbeatable low-cost AI translations and seamlessly integrated translation solutions, but they leave you high and dry when serious issues arise with your translations. 

This consulting advantage of LSPs also saves real money. Milengo reduces translation costs for some of its clients by up to six figures annually through customized and automated workflows. 

Service excellence is also reflected in the linguistic quality. An experienced service provider adheres to your style guides and brand manuals, and prepares translator briefings for individual languages. Additionally, they regularly seek your feedback on delivered translations to incorporate into future projects. 

IX. Use of AI 

Everyone is using artificial intelligence for translations these days and there’s no escaping it. What truly matters is HOW your language service provider leverages this powerful tool: 

• Is a carefully curated selection of leading AI services being utilized? 

• Is the quality of AI translations tested in advance based on text type and subject matter? 

• Can the AI service be trained to reflect your corporate language and industry terminology? 

The answers to these questions reveal the level of AI translation quality you can expect. 

X. Company profile 

Few industries are as captivated by artificial intelligence as the translation industry. And like with all other industries, this fascination brings with it relentless disruption. Established industry players like WCS and Lengoo have recently filed for bankruptcy, while so-called “super agencies” (language conglomerates formed through mergers, boasting hundreds of millions of euros in annual revenue) are on the rise. One example is RWS, which became the world’s largest language service provider in 2020 by acquiring its main competitor SDL in a billion-euro deal. 

In this volatile market climate, companies struggle to stay on track. Super agencies may offer less personalized service and generic quality, while smaller agencies, fighting to survive, sometimes make unfeasible promises just to attract new clients. 

These tips will help you find a stable and reliable service provider 

• Stay informed about recent M&A activities of your provider, which could lead to an unwanted shift in the quality and scope of their service offering. For example, the marketing-focused language service provider SuperText transformed into a “language technology company” following a merger with AI provider TextShuttle. 

• Verify that the LSP demonstrates professional business conduct and pays its translators ethically acceptable rates. Indicators of the provider’s reliability include the Translation Industry Transparency Board or the Proz BlueBoard, or occasionally comments or reviews from translators on the LinkedIn profiles of the respective companies. 

• Check the customer satisfaction of the provider on popular review platforms like G2. 

For some further orientation of the industry, here are two lists of the largest language service providers worldwide in 2024: 

• The 2024 NIMDZI 100 
• Slator’s 2024 Language Service Provider Index 

🚩Red flags to look out for with LSPs

A partnership with an LSP is typically a long-term commitment. At Milengo, our average collaboration with clients spans around 8 years. 

This also means a break-up, whether due to unfulfilled promises, poor translation quality, or opaque pricing, often cannot be achieved without significant changes and costs. For instance, you may already be tied to a technical setup involving translation software and translation management systems, from which you cannot easily migrate. 

This section discusses some red flags that should set off alarm bells when you meet with a new language service provider: 

• One price for everything: The provider offers you a single, presumably very low, flat rate for all your translation needs. A reputable provider typically has diversified pricing for different language services, reflecting the complexity of each service from software localization to marketing and technical documentation. 

• No questions asked: Some providers blindly agree to all your requirements. Focused on a quick win, they don’t ask about your company’s specific language guidelines, technical setup, or budget during the initial conversation. However, this discussion is crucial to align expectations if you want a successful collaboration later.

• No dedicated contact person: Some translation agencies may offer cheap translations but when something goes wrong, suddenly no one takes responsibility. A scenario where your feedback and suggestions are neither heard nor implemented is not a foundation for long-term collaboration. 

• No feedback loops: Some providers just deliver translations and nothing more. Professional service providers, however, have feedback processes to learn from your past translations and even build multilingual terminology glossaries to improve future translations. They treat quality as an ongoing process. 

Find your ideal language service provider

Not interested in going through lengthy selection processes, but still want to be sure about your LSP choice? The good news is you are already at a good starting point! Milengo is a leading language service provider with 30+ years of experience who combine established translator teams with cutting-edge AI language technology. One thing you won’t get from us are unpleasant surprises. Simply reach out for a no-obligation introductory meeting to plan your next translation projects with us!