Conversis Releases Research on the Localization Practices of Multinational Companies

Research Findings Show a Lack of Website and Product Localization Prevents Companies From Competing Globally

OXFORD, England--(BUSINESS WIRE)--Conversis, a translation and localization company based in the UK and US, in coordination with the Localization Program at California State University at Chico, has released the findings of a one-of-a-kind research study that examines the localization practices of multinational corporations and how well they are adapting to countries, cultures, and languages.

“Entering by the way of localization will assure that companies yield a healthy ROI.”

Research on Localization Practices was conducted by the Localization Program at California State University at Chico. The program provides education, training and outreach in Localization and International E-Business to help students and businesses compete in the new global networked economy.

To obtain a cross-sectional view from various organizational departments about each company’s localization practices, the study surveyed international business managers, localization managers, e-business managers, web-content managers, IT managers, and marketing managers within Fortune 500 companies with a multi-national presence.

According to two reports that summarize the research findings, The Strategic Role of Localization in Multinational Enterprises and Current Web Globalization Practices: An Industry Analysis, there is a gap in the perceived and actual importance multinational corporations place on localization of their software, websites, and products for international markets. A detailed synopsis of the research findings is available at www.conversisglobal.com.

For instance, 80 percent of the senior management surveyed considered localization a strategic priority, but the resources allotted are not relatively proportional to the strategic importance placed on localization. More than half of the respondents only allocate between one and five percent of their budget to localization and translation services.

More importantly, these companies see global trade – and their target markets in the next three to five years - increasing with countries like China, Japan and India. Yet an assessment of these companies’ websites shows they have only localized for the primary European markets such as France, Germany and Spain, detailing an inconsistent mindset for multinational companies today.

“Companies are talking the talk when it comes to recognizing the importance of localizing their products and websites, unfortunately, they are not walking the walk,” said Gary Muddyman, CEO and Managing Director of Conversis, who co-authored the research findings. ”The majority of corporations are ill prepared to expand globally and until they put a premium on localization, their expansion into global markets will fail.”

According to Nitish Sing, Ph.D., Associate Professor at California State University at Chico, companies that are relying solely on English speaking customers will miss out on the rapid expansion of global e-commerce.

“More than half of the world’s internet users don’t live in the United States,” said Singh, who co-authored the research findings and oversaw the research project. ”They speak different languages, use different currencies and have very different preferences and tastes than their American counterparts.”

“The number of non-English speaking internet users has tripled since 2000,” added Singh. “Businesses can no longer afford to stay domestic. Their next business competitor could come from any part of the world.”

According to the U.S. State Department, companies tend to lose about $50 billion in potential sales due to poor translations. This is further compounded because too many translation companies lack an understanding of marketing and are only set up to translate original copy, word-for-word, into foreign text.

“Entering the strong e-commerce market outside of the US requires more than just simply translating your products and websites, you must have a complete cultural understanding,” added Muddyman. “Entering by the way of localization will assure that companies yield a healthy ROI.”

About Conversis

Founded in 2003 and based in the United Kingdom, Conversis is a leading provider of Globalization, Internationalization, Localization and Translation (GILT) services, tailoring business needs to each company’s relevant markets worldwide. Serving clients in more than 30 markets worldwide, Conversis is dedicated to advancing the understanding and use of GILT as a strategic business tool. More information can be found at www.conversisglobal.com.

About the Localization Program at California State University at Chico

The Localization Program at California State University at Chico provides education, training and outreach in Localization and International E-Business, with the help of strategic partnerships and collaborations, to help students and businesses compete in the new global networked economy.

About the Research Program

Conducted by the Localization Program at California State University, Chico, under the supervision of Professor Nitish Singh and Gary Muddyman, Conversis CEO and Managing Partner, Research on Localization Practices analyzes corporate practices in terms of their software, website and product localization for international markets. Several hundred multinational companies participated in the survey that focused on international growth, profits related to localizing software and websites, the priority of localization within multinational companies, challenges faced in the localization process, and important factors companies consider when consulting with a translation/localization vendor.