Why Are Costs of Translation Language Dependent?

Why is it that Finnish translations can end up costing three times as much as simplified Chinese, or twice as much as Spanish?

The simple answer is that most of the heavy-lifting translation work is performed by freelancers, and basic economic principles of supply and demand apply to their costs. Finnish translators are scarce, which means there’s a high demand, so they have a lot of the bargaining power. Interestingly, these dynamics are not static: thirty years ago, Chinese languages were considered “exotic” by most language service providers and were not as commonly in demand as today.?

This same dynamic impacts how much translators can charge for language combinations too. Traditionally, the in-demand language combination included English as the source language. Given its ubiquity, there were plenty of translators offering English translations into any other language. However, in the last ten years, we’ve seen in-demand products developed globally, not just in the U.S., leading to language combinations that are less common and more expensive.

In addition to supply and demand, the cost of living affects translation costs.

For example, Spanish translators in Mexico often charge less for the same language combination compared to translators working in Spain because of this. Over time, the impact of this factor is diminishing as more translators choose to work remotely, but it remains a serious cost consideration.

How then can companies budget for variable translation costs? It’s best to budget for the average cost if you’re unsure which language you’re going to be localizing into; therefore, there are fewer surprises when the actual total is tallied.

Read more about translation here.