http://www.skype.com/en/translator-preview/
Skype Translator helps you communicate across language barriers, bringing people closer together. Simply set up a Skype Translator video or voice call with someone on almost any Skype client who speaks another language and start talking. Translator is currently available in English, Spanish, Italian and Mandarin. More languages are coming soon.
How it works
When you use Translator:
✔ You can call almost anyone who has Skype*.
✔ Your conversation is translated into another language in near real-time.
✔ What someone else says is translated back in your language.
This app will come in handy if you travel overseas where English is not the first language in the country.