All the world’s a stage, and it is counting on translation companies to get the word across. From the looks of it, translation is where the money’s at as next-gen language service provider Straker Translations (ASX: STG) joins the roster of companies profiting from providing translation services to tech giants. Straker has announced that the Company has extended its strategic translations services agreement with International Business Machines Corporation (IBM) by three years.
The new agreement ensures Straker will continue to accrue the significant, multi-million-dollar revenue from its existing contract with IBM and allow for growth. In FY22, IBM contributed $14.8 million in revenue to Straker, and this new contract is expected to keep up the financial growth. The contract also underscores the strength of the relationship between the company and IBM.
Straker Translations’ CEO and Co-Founder, Grant Straker, shared, “From a largely standing start, we have quickly scaled to meet the month-on-month exponential increase in IBM translations. We also moved from manual processing to automatic processing of translations. As of today, nearly 90% are processed automatically thanks to our success in the rapid development of a bespoke programming interface that links IBM’s systems with ours.”
The Straker-IBM contract will be effective from January 1, 2023, that is once the previous contract ends. It will see Straker support all parts for IBM’s business, including cloud. Specifically, the contract will cover translations around the clock for any language combination that IBM might request. Already, Straker has translated into 73 language combinations over the previous two years. Next, it will use and improve the direct links the duo has established between Straker Translations’ proprietary Ai-Powered RAY platform, which offers hybrid human and machine translations, and IBM’s technology platforms. Finally, it will provide translation services in the media segment across any language, with 23 languages already covered in the last two years for IBM Global Media Localisation.
The IBM Team commented, “Prior to our partnership with Straker, we dealt with 110 language service providers around the world, and most were handled manually. With Straker we have significantly streamlined the number of suppliers and automated much of the process and this has resulted in significant productivity and efficiency gains.”
Straker feels that this partnership is a testament to the Company’s technology-led translation solutions that can be delivered to global enterprises. He noted, “We provide a single point of contact for all translations globally and a responsive, technology-led solution that delivers significant gains in productivity and administration for our customers.” For Straker, the partnership has proved itself to be a great jumping off point for innovation.
For instance, IBM has been a launch customer of an application by Straker that allows customers to order and monitor translations through Slack, the remote workplace super app.
In 1HFY23, the Company’s revenue increased by over 40% as it teamed up with the UN, Microsoft, Slack and European data centres. Straker has its sights set on workplace super apps as its avenue of growth with remote working still reigning supreme. It will be interesting to see how it fends off competition to make a lasting impression.
Alinda is a Business Reporter for The Sentiment
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