The Total Economic Impact™ Of TransPerfect GlobalLink For Life Sciences
Cost Savings And Business Benefits Enabled By GlobalLink
A FORRESTER TOTAL ECONOMIC IMPACTTM STUDY COMMISSIONED BY TRANSPERFECT, APRIL 2025
For organizations that generate global communications, there are many reasons to consider a central localization platform. Current localizations may support effective coordination of the entire translation lifecycle, providing short times to completion with central visibility and reporting; centrally controlled standards; and labor productivities for coordinators, submitters, and reviewers. Translations may benefit from AI translation and content-matching to translation memory, which could lead to significant per-word cost reduction, better translation quality, and improved consistency.
TransPerfect’s GlobalLink Enterprise suite provides a unified translation management system across global enterprises. Labor productivity, standardization, and process time reduction are provided with project management and submitter and reviewer modules. Translation modules include AI/machine translation and translation memory, which may lead to cost reductions, quality improvements, and translation consistency, which is extremely important where regulatory compliance is required. The system provides full process and world-wide reporting, central standards setting, and integration with key internal applications such as life sciences content management systems.
TransPerfect commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the return on investment (ROI) enterprises may realize by deploying GlobalLink.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of GlobalLink on their organizations.
Return on investment (ROI)
366%
Net present value (NPV)
$2.55M
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed two representatives of a life sciences organization with experience using GlobalLink. Forrester used these experiences to project a three-year financial analysis.
The interviewees said that prior to using GlobalLink, their company’s clinical and regulatory organizations had no central controls, tools, or processes covering world-wide translation activities. This led to inconsistent quality, lack of oversight and transparency, and difficulties in managing suppliers. The absence of best practices, standards, and modern tools throughout the translation lifecycle created suboptimal processes for submitters, coordinators, and reviewers, which led to extra work and ineffective resource allocation. Finally, the translation process did not integrate with clinical or regulatory systems, such as the electronic trial master file, the regulatory information content management system, and the clinical document management system.
After the organization’s investment in GlobalLink with an initial focus on clinical translation processes, it successfully revamped the entire translation lifecycle. Centralized and integrated GlobalLink modules are in place to improve submissions, translations, and reviews. There is central control and visibility, with standardized processes across the world. Quality has improved, costs have come down, and personnel can spend more time doing value-add work. The regulatory translations implementation is well underway, but to prevent confusion, quantitative findings are not included in this study. The clinical and regulatory departments have seen additional translation cost savings and labor productivity due to the synergies of having a unified global system with common processes.
Key Findings
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the interviewees’ organization include:
- Translation cost savings of $1.2 million. Using GlobalLink’s translation memory (TM) capabilities, the interviewees’ organization significantly reduces its translation costs by reusing previously translated content through exact and fuzzy word matches. Utilization of GlobalLink Now, which is a web-based portal that offers both neural machine translation (NMT) and large language model (LLM)-powered translations, provides further cost reductions. In addition to cost savings, the translated content has higher quality and consistency.
- Submitter, reviewer, and coordinator time savings valued at $2.1 million. Using GlobalLink modules for project management, the content submission process, and the translated-content review process leads to significant productivity improvements in each area for the interviewees’ organization. Improving quality and consistency further reduces project coordination and review effort.
Unquantified benefits. Benefits that are not quantified for this study include:
- Quality and consistency improvements. The organization improves the quality, consistency, speed, and cost efficiency of translations, and process optimization improves standardization and quality throughout the translation lifecycle.
- A valuable partnership. Interviewees said TransPerfect provides consistent support and understands their organization’s processes to help improve collaboration and address issues proactively.
- Visibility improvement. Having centralized translations provides the organization with better transparency and oversight for tracking translation volumes and associated costs.
- Strong employee support. People directly and indirectly involved in translation support the new processes and recognize the improved results.
- Time-to-market improvements. The organization’s timeline for translations is shorter than it previously was, which shortens the timeline for getting a product to market.
- Regulatory compliance improvements. Although the interviewees’ organization has not finished implementing the regulatory translation process, interviewees said it is already seeing benefits in meeting current regulatory requirements and adjusting to changing regulatory requirements.
Costs. Three-year, risk-adjusted PV costs for the interviewees’ organization include:
- TransPerfect fees of $397,000. The interviewees’ organization pays TransPerfect fees including an initial one-time setup and training fee, a monthly software-as-a-service (SaaS) fee for GlobalLink modules, and connectors to integrate GlobalLink with other platforms and applications.
- Internal implementation, management, and support costs of $300,000. Implementation efforts for the interviewees’ organization include due diligence and requirements gathering, planning, training IT staff, and technical implementation. TransPerfect leads training for staff involved with translation administration, visualization, and reporting. Ongoing implementation and training occurs over time with geographical region and GlobalLink module expansion into LLM and other emerging technologies.
The interview and financial analysis found that the representative’s organization experiences benefits of $3.25 million over three years versus costs of $700,000, adding up to a net present value (NPV) of $2.55 million and an ROI of 366%.
Key Statistics
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Return on investment (ROI)
366%
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Benefits PV
$3.25M
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Net present value (NPV)
$2.55M
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Payback
<6 months
Benefits (Three-Year)
Translation cost savings Submitter, reviewer, and coordinator time savingsTEI Framework And Methodology
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in GlobalLink.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that GlobalLink can have on an organization.
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Due Diligence
Interviewed TransPerfect stakeholders and Forrester analysts to gather data relative to GlobalLink.
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Interview
Interviewed two representatives of an organization using GlobalLink to obtain data with respect to costs, benefits, and risks.
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Financial Model Framework
Constructed a financial model representative of the interview using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
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Case Study
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Disclosures
Readers should be aware of the following:
This study is commissioned by TransPerfect and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in GlobalLink.
TransPerfect reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
TransPerfect provided the customer name for the interview but did not participate in the interview.
Consulting Team:
Eric Hall
Drivers leading to the GlobalLink investment
Interviewees’ Organization
Forrester interviewed two representatives with experience using TransPerfect GlobalLink at their organization. The organization has the following characteristics:
- Pharmaceutical company.
- Annual revenue over $20 billion.
- Global footprint with clinical and regulatory translation requirements.
Key Challenges
The organization previously had a very decentralized approach to translation infrastructure and had no standards, controls, or common tools for the various workflows. Content submissions, translated-content reviews, and translation process coordination were typically very inefficient. Because different parts of the clinical and regulatory spaces and local affiliates would choose different translation providers, the translations would vary in quality and consistency, and supplier oversight was difficult. The lack of centralized tools meant there was no sharing of data centrally, leading to a lack of central visualization and reporting.
Solution Requirements/Investment Objectives
The interviewees’ organization searched for a solution that could:
- Centralize and standardize translation infrastructure to improve translation consistency and quality.
- Integrate seamlessly with internal systems.
- Improve workflows for the entire translation lifecycle to provide higher productivity during each phase and shortening the time to market for drugs.
- Provide centralized visualization and reporting to support better decision-making.
Use Case Description
The interviewees’ organization implemented several modules from the GlobalLink product suite, starting in geographical regions with significant clinical activity that require content translation. Inefficient translation processes were consolidated into a central, integrated translation process, improving productivity for content submitters, trial coordinators, and translated-content reviewers. The organization now completes translations more rapidly with better quality and consistency and at a lower cost. Over time, higher use of AI/machine translation and a continuous increase in translation memory matches led to further cost savings, quality improvements, and translation consistency.
For this use case, Forrester has modeled benefits and costs over three years.
Quantified benefit data
Total Benefits
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Translation cost savings | $156,000 | $594,000 | $749,250 | $1,499,250 | $1,195,650 |
| Btr | Submitter, reviewer, and coordinator time savings | $430,430 | $1,024,088 | $1,083,170 | $2,537,689 | $2,051,456 |
| Total benefits (risk-adjusted) | $586,430 | $1,618,088 | $1,832,421 | $4,036,939 | $3,247,106 |
Translation Cost Savings
Evidence and data. The organization’s primary translation savings came from the use of GlobalLink’s TM system, which reuses previously translated content through segment-level matches. The organization also used GlobalLink Now, which is integrated into the translation process to perform automated translations via NMT and LLM-powered translations with a human-in-the-loop workflow.
Modeling and assumptions. Based on the interviews, Forrester assumes the following:
- The organization uses GlobalLink to translate 4 million words in Year 1, 12 million in Year 2, and 13.5 million in Year 3.
- The percent of exact matched words and fuzzy matched words vary across years 1 to 3 along with the per-word cost savings enabled by GlobalLink’s TM for each of those categories.
- The organization’s effective cost savings relative to the prior translations are 75% of the actual cost savings.
Risks. Factors that may affect translation cost savings include:
- The level of maturity and centralization of the existing translation lifecycle management process.
- The nature of the content being translated (e.g., level of reuse).
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.2 million.
Translation Cost Savings
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Words translated | Composite | 4,000,000 | 12,000,000 | 13,500,000 | |
| A2 | Percent of words that are exact matches | TransPerfect | 20% | 35% | 45% | |
| A3 | Percent of words that are fuzzy matches | TransPerfect | 35% | 30% | 25% | |
| A4 | Average exact match savings per word | TransPerfect | $0.15 | $0.15 | $0.15 | |
| A5 | Average fuzzy match savings per word | TransPerfect | $0.10 | $0.10 | $0.10 | |
| A6 | Estimated cost savings relative to previous translation cost | Composite | 75% | 75% | 75% | |
| At | Translation cost savings | (A1*A2*A4+A1*A3 *A5)*A6 | $195,000 | $742,500 | $936,563 | |
| Risk adjustment | ↓20% | |||||
| Atr | Translation cost savings (risk-adjusted) | $156,000 | $594,000 | $749,250 | ||
| Three-year total: $1,499,250 | Three-year present value: $1,195,650 | |||||
Submitter, Reviewer, And Coordinator Time Savings
Evidence and data. Interviewees shared that GlobalLink provided significant productivity improvements for submitters, reviewers, and coordinators.
- Use of translation memory and glossaries within GlobalLink improved efficiency by reusing previously translated content and improving translation quality and consistency, which led to a significant reduction in reviewing time. Reductions in rework also led to reduced effort by coordinators.
- The interviewees shared that their organization uses GlobalLink Enterprise for project tracking and reporting, which they said saves significant time for project coordinators while also benefiting submitters and reviewers.
- For submitters, the organization implemented GlobalLink Portal to simplify document submissions for translation, which provided a more efficient and consistent process. Interviewees said this provided significant time savings for submitters and allows them to work on more value-add work.
- For reviewers, the organization implemented GlobalLink Review, which allowed business users to review translations and provide feedback via a consistent web interface optimized to support a distributed review process. Interviewees said reviewers’ productivity improved significantly, which reduced the distraction that translation review could do to their regular business activities. GlobalLink applied the reviewer feedback to continual training of TM and the AI/machine translation model, leading to further quality improvements.
- GlobalLink integration with the organization’s life sciences content management system, clinical document management system, and other back-end systems provided valuable time savings by aggregating translation-related information in GlobalLink and reducing the reinput of data into multiple systems.
Modeling and assumptions. Based on the interviews, Forrester assumes the following:
- The organization uses GlobalLink to manage 1,100 translation projects in Year 1, 2,600 projects in Year 2, and 2,750 projects in Year 3.
- GlobalLink reduces the average amount of time a project submitter spends per project by 40% in Year 1 and by 45% in years 2 and 3.
- GlobalLink reduces the average amount of time a project reviewer spends per project by 70%.
- GlobalLink reduces the average amount of time a project coordinator spends per project by 75%.
- Fifty percent of the time saved is productively applied.
Risks. Factors that may affect productivity savings from streamlined translation processes include:
- The number of translations projects.
- The organization’s translation services and processes.
- Cultural acceptance of technology and process change.
- Compensation rates.
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $2.1 million.
Submitter, Reviewer, And Coordinator Time Savings
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Total TransPerfect translation projects | Composite | 1,100 | 2,600 | 2,750 | |
| B2 | Average project submitter time per project before GlobalLink (hours) | Interviews | 3 | 3 | 3 | |
| B3 | Reduction in project submitter time per project with GlobalLink | Interviews | 40% | 45% | 45% | |
| B4 | Project reviewer average time per project before GlobalLink (hours) | Interviews | 4 | 4 | 4 | |
| B5 | Reduction in project reviewer time per project with GlobalLink | Interviews | 70% | 70% | 70% | |
| B6 | Project translation coordinator time per project before GlobalLink (hours) | Interviews | 25 | 25 | 25 | |
| B7 | Reduction in translation coordinator time per project with GlobalLink | Interviews | 75% | 75% | 75% | |
| B8 | Productivity capture from time saved | TEI methodology | 50% | 50% | 50% | |
| B9 | Average fully burdened cost per hour for an employee blended with contractors | Research data | $43 | $43 | $43 | |
| Bt | Submitter, reviewer, and coordinator time savings | B1*(B2*B3+B4*B5 +B6*B7)*B8*B9 | $538,038 | $1,280,110 | $1,353,963 | |
| Risk adjustment | ↓20% | |||||
| Btr | Submitter, reviewer, and coordinator time savings (risk-adjusted) | $430,430 | $1,024,088 | $1,083,170 | ||
| Three-year total: $2,537,689 | Three-year present value: $2,051,456 | |||||
Unquantified Benefits
The interviewee mentioned the following additional benefits that the organization experienced but was not able to quantify.
- Quality and consistency improvements. Interviewees said GlobalLink’s use of translation memory and glossaries as well as NM and LLM-powered translation improves the quality, consistency, translation speed, and cost efficiency of their organization’s translations. They also said process optimization from the GlobalLink modules improves standardization and quality throughout the translation lifecycle and that with a centralized system, translation quality is better controlled and maintained. This reduces the risk of errors and misinterpretations that can lead to noncompliance.
- A valuable partnership. Interviewees said TransPerfect provides consistent support and understanding of their organization’s processes and that this helps their company improve collaboration and address issues proactively. The explained that the partnership facilitates support for various initiatives (e.g., new application introductions and acquisition activities), minimizing time spent on low-value tasks.
- Visibility improvement. Interviewees said centralizing translations provides better transparency and oversight for their organization, which is beneficial for managing suppliers and ensuring quality. It also enables regular tracking of translation volume and associated costs, providing the company with insights into spending and helping it to manage budgets more effectively. Interviewees explained that key performance indicators (e.g., error rates, status toward compliance deadlines) and other data to support continuous improvement efforts have been helpful.
- Strong employee support. Interviewees said there was originally hesitancy to process change in some areas of their organization but that time savings and quality improvements led to strong support by those directly and indirectly involved in the translation process. The explained that high-quality scores for translations reflect well on everyone involved in the translation lifecycle.
- Time-to-market improvements. While difficult for the interviewees to quantify, they said using translation memory and machine translation significantly reduces the time required for translations and shortens the timeline for getting a product to market.
- Regulatory compliance improvements. Interviewees said the regulatory department is seeing benefits in an ever-changing regulatory environment. They explained that centralized translations are particularly beneficial in meeting new regulations such as the European Union Clinical Trial Regulation (EU CTR), avoiding bottlenecks and ensuring compliance. The organization also benefits from seeing a clear audit trail for translation activities, which helps during regulator audits and compliance checks. The interviewees also said existing regulations are being addressed more effectively and high-quality translations are consistently delivered, helping the organization meet regulatory requirements and avoid potential compliance issues.
Flexibility
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement GlobalLink and later realize additional uses and business opportunities, including:
- Agility in adjusting to translation demand changes. Interviewees said the centralized system in terms of both operation and visibility allows their organization to respond quickly to fluxes in translation needs. They explained that GlobalLink provides flexibility and scalability essential for managing large volumes of translations across multiple regions.
- Flexibility in deploying GlobalLink modules. The organization’s implementation of GlobalLink was done per geographic priorities as well as per department priorities, which provided higher returns sooner. It can also easily add modules not currently deployed later.
- Ability to adopt new translation capabilities. Interviewees said their organization is better prepared to adopt improved AI or translation memory engines, more automated quality control, more insightful reporting, etc.
- GlobalLink expansion. Interviewees said the use of GlobalLink within their clinical and regulatory organizations has gotten the attention of other organizations that require translations at the company and that GlobalLink’s footprint within the corporation is expanding.
- Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
Quantified cost data
Total Costs
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Ctr | TransPerfect fees | $0 | $138,000 | $161,000 | $184,000 | $483,000 | $396,754 |
| Dtr | Internal implementation, management, and support | $59,760 | $71,040 | $98,160 | $125,280 | $354,240 | $299,591 |
| Total costs (risk-adjusted) | $59,760 | $209,040 | $259,160 | $309,280 | $837,240 | $696,345 |
TransPerfect Fees
Evidence and data. Interviewees said their organization pays TransPerfect fees including an initial one-time setup and training fee, a monthly SaaS fee for GlobalLink modules, and connectors to integrate GlobalLink with other platforms and applications. The costs of upgrades and standard support are included in the monthly fees.
The organization uses GlobalLink, a modular suite of products, which includes:
- GlobalLink Enterprise. Provides project tracking, reporting, workflow, vendor management, and secure delivery.
- GlobalLink Portal. Provides submission process for translations.
- GlobalLink Review. Provides in-country affiliate review and feedback process for translated content in-context.
- Translation Memory Management. Repository for previously translated content. Used to reduce translation activities via direct matches and fuzzy logic to automatically translate new content.
- GlobalLink Strings. Technology to support translation of applications.
- GlobalLink Now. On-demand machine translation portal.
- GlobalLink integrations. Integrations with the organization’s content management system, clinical document management system, and other major systems.
Modeling and assumptions. Based on the interviews, Forrester assumes the interviewees’ organization pays $120,000 in fees to TransPerfect in Year 1, $140,000 in Year 2, and $160,000 in Year 3.
Risks. TransPerfect fees will vary based on:
- The GlobalLink modules deployed.
- The number of GlobalLink users.
- The amount of integration.
- Workflows implemented.
Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $397,000.
TransPerfect Fees
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| C1 | TransPerfect fees | TransPerfect | $0 | $120,000 | $140,000 | $160,000 | |
| Ct | TransPerfect fees | C1 | $0 | $120,000 | $140,000 | $160,000 | |
| Risk adjustment | ↑15% | ||||||
| Ctr | TransPerfect fees (risk-adjusted) | $0 | $138,000 | $161,000 | $184,000 | ||
| Three-year total: $483,000 | Three-year present value: $396,754 | ||||||
Internal Implementation, Management, And Support
Evidence and data. The organization’s implementation efforts included due diligence and requirements gathering, planning, training IT staff, and technical implementation, including platform-setup and customization, setting up the integration into clinical back-end system and regulatory back-end system, setting up TM, training AI models, and enabling single sign-on (SSO). Staff associated with the central administration, visualization, and reporting of the translation activities underwent additional training. Ongoing technical implementation and training occurred over time with new and expanded module use. Ongoing non-IT labor included user support activities, creation of user guides, creation and communication of geographic region-specific workflow documentation, and the development and communication of best practices.
Modeling and assumptions. Based on the interviews, Forrester assumes the following:
- The interviewees’ organization initially dedicates 280 hours of IT time to planning, training, and implementation. It then dedicates 60 hours to ongoing training, implementation, and support in Year 1, 80 hours in Year 2, and 100 hours in Year 3.
- The organization initially dedicates 800 hours of non-IT (e.g., coordinator, submitter, reviewer) time for planning, training, and implementation. It then dedicates 1,300 hours to ongoing training and management in Year 1, 1,800 hours in Year 2, and 2,300 hours in Year 3.
- The fully burdened hourly labor cost for an IT employee is $55.
- The fully burdened hourly cost for a non-IT employee is $43.
Risks. Factors that affect internal implementation, management, and support costs include:
- The organization’s translation services and processes.
- Cultural acceptance of technology and process change.
- Compensation rates.
- Complexity and scope of the implementation.
- The number of users to be trained.
Results. To account for these risks, Forrester adjusted this cost upward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $300,000.
o
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| D1 | IT time spent on planning, training, internal implementation, and ongoing support (hours) | Interviews | 280 | 60 | 80 | 100 | |
| D2 | Fully burdened hourly rate for an IT employee | Research Data | $55 | $55 | $55 | $55 | |
| D3 | Non-IT hours for planning, training, coordination, implementation, and ongoing management | Interviews | 800 | 1,300 | 1,800 | 2,300 | |
| D4 | Fully burdened hourly rate for a non-IT employee | Research Data | $43 | $43 | $43 | $43 | |
| Dt | Internal implementation, management, and support | D1*D2+D3*D4 | $49,800 | $59,200 | $81,800 | $104,400 | |
| Risk adjustment | ↑20% | ||||||
| Dtr | Internal implementation, management, and support (risk-adjusted) | $59,760 | $71,040 | $98,160 | $125,280 | ||
| Three-year total: $354,240 | Three-year present value: $299,591 | ||||||
Consolidated Three-Year, Risk-Adjusted Metrics
Cash Flow Chart (Risk-Adjusted)
Total costs Total benefits Cumulative net benefits Initial Year 1 Year 2 Year 3-
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
Cash Flow Analysis (Risk-Adjusted Estimates)
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($59,760) | ($209,040) | ($259,160) | ($309,280) | ($837,240) | ($696,345) |
| Total benefits | $0 | $586,430 | $1,618,088 | $1,832,421 | $4,036,939 | $3,247,106 |
| Net benefits | ($59,760) | $377,390 | $1,358,928 | $1,523,141 | $3,199,699 | $2,550,761 |
| ROI | 366% | |||||
| Payback | <6 months |
Appendix A: Total Economic Impact
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
Total Economic Impact Approach
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Benefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization.
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Costs comprise all expenses necessary to deliver the proposed value, or benefits, of the solution. The methodology captures implementation and ongoing costs associated with the solution.
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Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. The ability to capture that benefit has a PV that can be estimated.
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Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
Appendix B: Supplemental Material
Related Forrester Research
Introducing The B2B Localization Prioritization Tool, Forrester Research, Inc., December 1, 2023.
Measure Localization Using A Balanced Scorecard, Forrester Research, Inc., September 24, 2024.
Chart Your Course To Growth-Focused Localization, Forrester Research, Inc., October 30, 2024.
Appendix C: Endnotes
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
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