Google Translate now supports Telugu (official blog post). And, this service is still in experimental alpha stage. It is working reasonably well for simple and commonly known sentences and phrases. A lot more to be improved for the complex sentences.
Here is a screen shot showing the English to Telugu Translation of this post:
However, the good thing is that we can suggest correct or alternate words for the translations. When more and more people jump in and suggest correct translations and natural Telugu word order, etc, Google Translate learns them. And, we all will have a better Telugu translation tool.