CONVERSIS RELEASES RESEARCH ON THE LOCALISATION PRACTICES OF MULTINATIONAL COMPANIES

• Monday, 19 February 2007

Research findings show a lack of website and product localisation prevents companies from competing globally

Conversis, one of the world’s leading providers of globalisation, internationalisation, localisation and translation (GILT) services, in coordination with the Localisation Program at California State University at Chico, has released the findings of a pioneering research study that examines the localisation practices of multinational corporations and how well they are adapting to countries, cultures, and languages.

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

To obtain a cross-sectional view from various organisational departments about each company’s localisation practices, the study surveyed international business managers, localisation 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 summarise 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 localisation of their software, websites, and products for international markets. A detailed synopsis of the research findings is available at www.conversisglobal.com, or contact andrewb@chazb.com.

“Companies are talking the talk when it comes to recognising the importance of localising 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 localisation, their expansion into global markets will fail.”

For instance, 80 percent of the senior management surveyed considered localisation a strategic priority, but the resources allotted are not relatively proportional to the strategic importance placed on localisation. More than half of the respondents only allocate between one and five percent of their budget to localisation 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 localised for the primary European markets such as France, Germany and Spain, detailing an inconsistent mindset for multinational companies today.

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.” said Nitish Sing, Ph.D. “The number of non-English speaking internet users has tripled since 2000, and businesses can no longer afford to stay domestic as their next business competitor could come from any part of the world.”

According to the U.K. Department of Trade and Industry, there are 20 official languages within the EU alone and more than 1 billion euros are spent each year on translation services. Unfortunately even with this growing need for quality translation, 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 within key regions of the EU requires more than just simply translating your products and websites, you must have a complete cultural understanding,” added Muddyman. “Entering by the way of localisation will assure that companies yield a healthy ROI.”


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About Conversis
Founded in 2003 and based in the United Kingdom, Conversis is a leading provider of Globalisation, Internationalisation, Localisation 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 Localisation Program at California State University at Chico
The Localisation Program at California State University at Chico provides education, training and outreach in Localisation 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 Localisation Program at California State University, Chico, under the supervision of Professor Nitish Singh and Gary Muddyman, Conversis CEO and Managing Partner, Research on Localisation Practices analyses corporate practices in terms of their software, website and product localisation for international markets. Several hundred multinational companies participated in the survey that focused on international growth, profits related to localising software and websites, the priority of localisation within multinational companies, challenges faced in the localisation process, and important factors companies consider when consulting with a translation/localisation vendor.


Company Contact:
Gary Muddyman, MD and CEO
Conversis
Tel: +44 (0) 845 450 0805
email: gary.muddyman@conversisglobal.com

Press Contact:
Andrew Ball / Chaz Brooks
Chazbrooks Communications
Tel: +44 (0)1483 537 890
email: andrewb@chazb.com / chazb@chazb.com

This press release was distributed via SourceWire, a service from Daryl Willcox Publishing, on behalf of Chazbrooks Communications. For more information visit http://www.dwpub.com/pressreleasewires