Jesper Osgaard on his blog post here has talked about a new tool "Conversation Translator" which would do the translations for you.
Here is the Donwload Link After installing the tool, click the double chevron (>>) at the upper right of your Lync conversation window and choose Conversation Translator.
The Lync client is extended with a conversation area to the right in which you can select sender and receiver language and start the conversation. -Enjoy Office 365 Labels: Office 365
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