Lost in translation - demand from public sector to dry up?

This is a terrific case study from the Guardian with various relevant business studies angles…

The case study describes the competitive pressures facing a Yorkshire-based service business which specialises in providing translation services for both the public and private sector clients.

The forthcoming pubic sector spending review in the UK is poised to pull the rug from underneath many successful small businesses in the private sector. The serice sector looks set to be particularly hard hit and there is growing evidence that the impact on private sector unemployment of government spending cuts could be significant.

The business featured is coming under two key pressures:

(1) A price war on translation services generated by competitors fighting for a share of the remaining public sector demand,

(2) The loss of demand from cancelled contracts

Interestingly, the business featured is able to partially offset the loss of public sector demand with growing revenues from firms looking to expand into emerging markets like China and India. That looks like a useful broadening of the product and customer base, at a time when the prospects of suppliers to the public sector look so bleak.