FAQ (Frequently asked Questions)
Welcome to our investors, well-wishers. Since we are a newly listed firm, you could have many queries. Here is a list of FAQs that we thought might be of help. Feel free to reach out with any questions and we will continue to update this section.
- What is LangTech? What is Localization? Is there a market for it? How big is it?
- Where is LangTech applicable? Any use cases? What type of projects do you do?
- How big is a typical project? What is the billing cycle?
- What is your strength? Or what is your moat?
- Who are your competitors?
- How is the next tier team? What is your attrition? How do you retain or motivate staff?
- As mandated by the exchange, an SME can declare half yearly results. Will you declare quarterly results or half yearly results?
- Will you sustain next 20 years?
- Is there a market for this in India?
1. What is LangTech business? What is Localization? Is there a market for it? How big is it?
Many times, customer problems or use cases are solved together while leveraging both the combination of Language (or Linguistics) + Technology. This is referred to as LangTech.
Likewise when brands launch products or services targeting a specific geography or locale, these are localized to suit the local language, culture and needs of the consumers. This could mean change in user interface (UI), user experience (UX), currency, date formats, language support and much more. This is referred to as “Localization”.
Globally this is a 40 billion USD plus market and growing at YoY 10% and above. Refer to the Google report on Indian market for Localization.
2. Where is LangTech applicable? Any use cases? What type of projects do you do?
Imagine few scenarios where the client has –
- An internet banking site in English and wants to localize it in Hindi to target domestic consumers
- To generate multi-lingual reports from their existing ERP software
- To translate their website in 3 Asian languages
- To do linguistic check of different channel marketing material (eg. sms, marketing pamphlet, web material)
- To implement chatbot on their website but it has to understand Hindi /Marathi questions from the consumers
- To translate CAD files from German to English to pass the manufacturing to some company in an English speaking country
- To develop an application that can store different language based data
- To support their users in different languages
- To localize their e-learning or training videos with multi-lingual subtitles or voiceover
- To showcase all e-commerce products in multi-languages on their website
- To develop software products or tools to support system with multi-lingual requirements
3. How big is a typical project ? What is the billing cycle?
Typically our projects are T&M (time and material) based or turnkey project based. The project size is around 20K USD – 80K USD to be delivered in 3-6 months of time.
We also have clients with whom we sign master contract where rates are mentioned. And then per month they give us work which gets invoiced at month end. Here we have clients who give us an annual business of 100-150K USD
4. What is your strength ? Or what is your moat?
- Deep relationships with clients in overseas markets – especially difficult markets such as Japan
- Tighter integration with clients through API connectivity and hence difficult to replace immediately
- Localize and support 100+ languages
- In-house linguistic + technical expertise for 8 core Indian languages and Japanese language thereby can assure fast turnaround time as well as quality
- Strong technical capabilities to handle multiple file formats, different CMS, different technologies (eg. python / php / .net / Java / mysql / NLP / Audio-video technologies) as well as capabilities to support enterprise products and digital transformation initiatives, AI-ML data analytics initiatives.
- Strong partnership with the ecosystem of partners & freelancers due to timely payment and fair treatment over years
- Ability to work with end-user firms as well as system integrator firms
- A team of 15+ mid-level managers who are with the company for 10+ years
- Can manage complex projects involving multiple languages, multiple file formats, stringent timelines, quality orientation
- Ability to upfront invest in a small team of say 20+ members for a single project
- Reputed brand and working in this field for 15+ years
5. Who are your competitors?
This space has product companies, vanilla translation companies, individual freelancers. Globally there are LSP (localization service providers) but this combination of Language + Technology + Consulting is where Fidel has a lead and differentiation.
6. How is the next tier team ? What is your attrition ? How do you retain or motivate staff?
Fidel has a pool of 15+ middle managers who are with Fidel for more than 10 years and capable of managing the operations and business. Last 3-4 years, Fidel asks its senior management to take a mandatory 3-5 day leave to ensure less individual dependency with proper process and workflow.
Fidel has an attrition of 10% which is quite less than other firms. It attracts people who have an affinity towards languages + technologies & consulting, has a good internal culture, motivates them by encouraging them to pursue higher studies, pursue teaching or publishing books or articles, pursue social community services etc. From time to time Fidel has also finetuned its policies while listening to its team members and fellow employees.
Fidel encourages values like humility, empathy, taking responsibility, customer centricity, risk taking and holistic individual as well as corporate growth. This personalized touch and experience has encouraged members to stay longer with Fidel.
7. As mandated by the exchange, an SME can declare half yearly results. Will you declare quarterly results or half yearly results?
As part of good Corporate Governance initiative, Fidel plans to declare its Unaudited Financial Results along with Limited review report of our statutory auditors on a quarterly basis. Initially
we will have to learn many new things but we see all these compliances and governance a positive welcome step to better ourselves further.
8. Will you sustain next 20 years?
Having seen the dot com bust, Lehman shock, Tsunami and now Covid pandemic, we thank our clients, employees and well-wishers who helped us sustain and grow these many years. Noted writer and thinker Taleb coins the term “Lindy Effect” while describing the longevity of the world’s greatest books: “If a book has been in print for forty years, I can expect it to be in print for another forty years.”
Simply put, the Lindy Effect states: The longer an idea has lasted, the greater likelihood it will continue to last.
With already 18+ years of working, we will surely continue & grow for next 20+ years. Offcourse we need the support of our shareholders, our clients, our employees.
9. Is there a market for localization, language technologies in India?
Yes definitely. There are multiple factors at play because of which there is a huge opportunity for next 10 years or so. Offcourse some government support will be helpful to expedite this growth but nevertheless the startups, the consumers will drive the demand.
Indian startups are hungry to go global. These SaaS firms are launching their solutions in different Asian / Latin American / European /Middle Eastern markets where local language UI / UX is mandatory for consumers to make the purchase decision.
At the same time, global companies are coming to Asia & India and want a pie of these markets. These companies need user support, consumer education, branding etc in local languages.
Trading platforms, real estate information, health related information, insurance related decision making all in localized web or mobile applications can also contribute to consumer education and awareness, prevent frauds and establish trust.
Government is keen to bridge the social digital divide by making E-Government services (eg. tax filing, passport application) available online in local languages using innovative technology solutions.
Further if government makes local language support (UI / UX /customer education) mandatory to private companies in the field of healthcare, finance, real estate that affects an individual citizen / consumer, this will open up an additional few billion USD market in India.
Government also recently announced that legal cases or legal information to be made available in local languages. There are 100+ portals such as tracking missing children portal, agriculture related portals which if localized in local languages, it will help in dissemination of information across the country.
Gone are the days where knowing English was the sign of literacy. With the proliferation of smartphones, lowering of data pack costs and growing aspirations amongst common person, there is a huge push and requirement for all services including ecommerce, food and delivery, healthcare, insurance, banking across urban, semi-urban and rural areas. All this if made available in local language UI /UX then it will help in growth of consumption of these services fueling growth.
Hence we are very positive and see that next 10-15 years, surely there is a need for Language+Technology+Consulting, localization services and solutions in India. Fidel is committed to grow and build the required ecosystem for India.