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The Benefits and Costs of Localisation


Localisation is the process of adapting your product to local markets by modifying its terminology, content, and design. It takes into account the differences in cultures between different markets. It is also referred to as internationalisation or localisation.

This article explores the benefits and costs of localisation. It also explains why it’s important for your business.

Identifying opportunities for localisation

Identifying opportunities for localisation requires collaboration between companies and governments. It involves setting industry and individual firm targets for local procurement and demand forecasting. In addition, it can also involve engaging competitors.

First, you should define your objectives and KPIs. You need to know your target audience and how to reach them. It is also important to consider cultural nuances. This will help you tailor your content. It is important that your content is relevant, engaging and appropriate for each target audience. Once you’ve defined your goals and KPIs, you can then begin the process of localisation.

A localisation strategy should be linked to a global business plan. This will allow you to measure the impact of localisation and reduce translation costs. Moreover, it can help you allocate resources more effectively. It should also set a budget and timeline. In addition, it should include a team for localisation.

The process of localization begins with an analysis phase. This stage involves gathering all the necessary information to make decisions about the localisation of your products. It also involves considering factors such as the business environment and stakeholder expectations. Next, the decision stage is about determining the best localisation route to take. During this stage, you will choose localization technology, language service providers, and markets to target.

Types of localisation

There are two types of localisation: the first is aimed at employment of locals. It is a concept that has been gaining ground in the Gulf Cooperation Council (GCC) countries for decades. In the late 20th century, these countries were largely dependent on foreign technologies, know-how, and expertise. Concerns about national economic security and autonomy led them to realise that localisation was necessary for reducing their reliance on expat labor, especially in key state institutions.

The second type of localisation involves ensuring that the product’s content is appropriate for the target market. This process takes several steps. For example, the product must be translated into multiple languages and the colors and graphics must be appropriate for the target market. Once this process is complete, the product will be ready for global distribution.

Another type of localisation involves the use of a common software platform. This software platform is usually made up of software modules with common interfaces. The platform isolates irregularities that are common to heterogeneous data. This feature can improve reusability and transferability, and reduce development costs.

While the third type is the use of local suppliers. Local content policy is a strategy that benefits local suppliers and creates an environment where they can flourish. This type of localisation is a step towards sustainability. The process is aimed at improving the local economy and enhancing competitiveness. In this way, local content policies help organisations develop local capacities.

Localisation in the humanitarian sector can be problematic as it can transfer resources to local actors without respecting their ways of being. In Colombia and Myanmar, for example, indigenous groups and local public authorities have been pushed into conformity with donor requirements. On the other hand, localisation that supports local solutions respects the ways of the local actors. In Colombia, this approach would involve recognising local public authorities, and ensuring support for indigenous and faith communities. It would also extend to the private sector.


The costs of localisation are determined by the amount of words to be translated, as well as the quality of the output. The cost per word can account for up to 80% of the total localisation budget. This can be a prohibitive barrier to entry for some companies. As a result, it is crucial to choose the most appropriate localisation provider for your needs.

Ideally, you should build your software so that it is localisable in all regions. This helps to minimize bugs before it is launched, and it also allows the localisation team to focus on cultural and linguistic considerations. In addition, you will only have to change the code once, which reduces costs in the long run. However, it is important to understand that internationalisation is a complex process, and you must take a number of other factors into consideration before launching the localised version.

Another cost of localisation is the reduction of competition between foreign and domestic firms. In the absence of a competitive environment, local manufacturers can charge a higher price and produce a lower-quality product than their overseas counterparts. This means that the price gap between local and imported products will widen. Furthermore, foreign manufacturers have little incentive to innovate and improve their products. As a result, localisation policies reduce incentives for firms to invest in efficiency and quality improvement.

Another cost of localisation is the loss of service. As a result of localisation, some websites will be unavailable in some countries. This can include foreign news websites and online multiplayer games. Moreover, localised content is more likely to be subject to censorship and may become unsuitable for certain markets.


Importance of localisation to business

Localisation has become a vital part of doing business internationally. It helps businesses create products and services that cater to the specific needs of their target markets. It can also help businesses build a positive brand image, which in turn can increase customer engagement. As a result, 74% of multinational enterprises consider localisation to be one of their most important priorities.

Localisation involves adapting your content and business to the language and cultural requirements of the country in which you are operating. Using localised versions of your content will increase your customers’ ability to understand your company’s message. This process also considers regional dialects. For example, Spanish in one region is different from Spanish in another. Therefore, it is important to consider these local aspects before you start marketing your business in different countries.

Netflix has become one of the most successful examples of a company utilising localisation. The streaming service has expanded into 190 countries and continues to expand rapidly. Its localization strategy includes collaborating with local partners to gather local cultural context. The company also creates targeted local content to cater to local tastes and preferences.

Localisation is a process that requires continuous monitoring and management. It’s important to monitor business trends and competitor activities in the local markets, and monitor revenue in order to anticipate issues that may arise. Using the right financial tools to track and forecast revenue will make localisation easier. If you have an effective localisation strategy, localisation will help your business reach new customers and gain a competitive advantage.

To effectively localise your business, you must know which elements are essential to localize and how much to customise. You should understand the differences in the markets in which your business operates and understand what local customers will like. For example, one retailer may benefit from highly localized staff and standardized products, while another manufacturer might want to localize its product features and incentives for local consumers.

Resources for finding localisation professionals

Resources for finding localisation professionals include organizations, conferences, and professional networks.

Localization professionals often focus on a specific language, region, or niche. By focusing on a specific area, these professionals can adapt content based on cultural norms and audience expectations. In addition, they can adapt colloquialisms and technical jargon for a particular audience.

Aside from online resources, localisation professionals can also network in social media groups and eLearning forums. These groups attract eLearning industry thought leaders and organizations that require localisation services. By promoting their services in these forums and groups, localization companies can build credibility and brand recognition. They can also offer to meet with prospective clients to discuss their specific needs.

The goal of localization is to ensure that a translation is appropriate for the audience it is being used for. Cultural references and societal norms must be taken into consideration as well. Ultimately, localisation helps people understand and retain the content. By connecting with an audience, localized content makes it more likely that they will learn from the material.


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