Dec 2009, 23:35
What is the cost of poor translation?
Low-quality translations can be very costly. Here is an example of analysis.
A mid-size international project with the total cost of, say $100 million and a payoff term of 5 years. Let’s assume that the bank’s share in the capital is 50%, i.e. $50 million and the annual interest rate is 8%.
It means that in the course of 5 years $120 million dollars is to be paid (which includes the bank interest.) At the annual profit margin of 20% it will be required to have annual revenues of $120 million or about $329,000 a day.
In other words, one day of delay in the project commissioning will cost almost $329,000. More…