Microsoft-owned Skype can translate in real time now. Skype Translator is live for all Windows desktop users. It currently offers voice-to-voice translation for seven languages including English, French, German, Italian, Mandarin, Portuguese, and Spanish. An additional 50 languages are available for translation via instant message.
Here are some fun facts to date:
If your contact is registered in Skype as speaking a language other than English then Translator will automatically turn on. If not, you can still activate Translator by clicking the language drop-down menu under your contact’s name. Then just switch the language to whatever they will be speaking to activate Translator.
Source: Skype