TABLE OF CONTENTS

1 Introduction 5 The Localization Index

Introduction 1 The Localization Index 11

The Centralization of
Localization 12

2
Target Locales 13
Respondent Breakdown Localization Vendors 15
Measuring Impact 16
Respondent Breakdown 2

3 The Localization Impact

6 2021 Focus
2021 Focus 17
The Localization Impact 4
New Year, New Targets 19
Company Impact 5
Executive Sponsorship 6

7
4
The Loc Hub
Where It Hurts The Loc Hub 20
THE STATE OF LOCALIZATION REPORT

Where It Hurts 8 Advice From Your Peers 21

LSPs- Should I Stay or What’s Ahead 22
Should I Go? 9

8 Conclusion
Final Thoughts 23
 I NT RO D UCT IO N
This State of Localization Report shows that now,
more than ever, there’s a clear need for a flawless
global experience across every department.
The past year has drastically changed the way
consumers purchase products and, as a result,
the way businesses operate. The world has
become more digital. In fact, more
transactions happened online in the early
months of 2020 than in the previous ten years
combined.
As the personal and professional lives of many
across the world shifted to digital, the
boundaries and limitations posed by physical
proximity melted away - meaning that viewers,
supporters, customers, users, and more could
now come from anywhere. But with global
reach came the need to build, distribute, and
support a global customer experience.
THE STATE OF LOCALIZATION REPORT
From online shopping and social media to
digital learning and increased app usage,
consumers are more connected to companies
on an international scale. As a result,
companies are beginning to understand the
importance of a global customer experience.
The question on every company’s mind today
is how to deliver that experience.
1
To help shine a light on trends and predictions
for what’s to come in the world of global
customer experiences, we surveyed over 900
experts involved in localization. We wanted
to better understand their teams, strategies,
goals, and expectations for the future. While
we can’t predict what the year 2030 will look
like, we believe the current state of localization
will give insight into the importance
localization plays in building a truly global
customer experience.
This State of Localization Report shows that
there's a clear need for a flawless customer
experience globally across every department.
Interestingly, the data shows that there seems
to be a disconnect between the impact that
localization can have on the growth of most
companies and executive representation to
amplify this impact.
We can all learn from what has turned out to
be a chaotic and turbulent 2020, and this
report will help us better understand how we
can make the global experience even more
powerful in 2021 and beyond.
 RESPONDENT BREAKDOWN
The State of Localization 2021 Report
THE STATE OF LOCALIZATION REPORT
showcases data collected from a
comprehensive survey conducted by Lilt in
early 2021. Responses from over 900 experts
across a range of organizational departments
are reflected in the graphs, statistics and text
shared within this report. Both the survey and
2
the report were designed exclusively for
professionals involved in overseeing, managing,
and executing enterprise localization. It is
important to remember that every organization
approaches localization differently, and thus,
there is great diversity even among the
professionals involved in localization.
 DEPARTMENT Marketing

Localization
Of our survey respondents, 75%
Product
work in localization, marketing, or
Other
product and engineering, with the
remaining 25% scattered across Engineering

customer support, operations, Customer Support

sales, human resources, and Digital Transformation

more. While we will focus on data Sales

from all respondents in this HR/Ops

report, we will analyze findings Management

by department in future reports. IT

0 20 40 60 80

REGION
North America
Of our survey respondents, 52%
are based in North America, 33% Western / Central Europe

are based in Western and Central

Europe, and the remaining 16% Asia

are based in Africa, Asia, Eastern Eastern Europe

Europe, the Middle East, and
Oceania. Middle East

Oceania
THE STATE OF LOCALIZATION REPORT

Africa

0 50 100 150

3
 THE LOCALIZATION IMPACT
THE STATE OF LOCALIZATION REPORT

In this increasingly globalized world, This section explores the current impact of

localization is becoming a more common localization and how organizations can unlock

business function. As it does so, it begs its full potential to excel internationally.

the question - what exactly ARE the

business impacts of localization?

4
 BUSINESS IMPACT
Across the board, our findings indicate
that localization can have a substantial
“As cross-border
impact on business success.
commerce accelerates
84%
of respondents believe it has an
impact on revenue
in coming years,
localization will
84%
of respondents believe it has an
impact on company brand
become more and
more important for the
91%
of respondents believe it has an
impact on customer experience overall user
experience.”
While more than 80% of those involved in
- Engineering Manager, Retail & Consumer Goods
localization believe that the function

80%
highly impacts their business success,
Respondents believe
51% do not believe that localization is a
+ that localization highly
impacts their business
priority in their company strategy. This
success
indicates that more than a third of
businesses may be missing the

51%
THE STATE OF LOCALIZATION REPORT

opportunity to prioritize a business Respondents do not

believe that localization
function that could markedly impact is a priority in their
company strategy
business success across a number of
categories and metrics.

5
 EXECUTIVE SPONSORSHIP

71% INDIVIDUAL
CONTRIBUTORS

PROFESSIONALS
INVOLVED IN 23% MIDDLE
MANAGEMENT
LOCALIZATION

6% SENIOR LEADERSHIP
POSITION

Among professionals involved in localization, “We previously had freedom to

we found that 71% are individual contributors
and 23% are middle management. That leaves grow and experiment, but we’re
just 6% for those in senior leadership getting more direct feedback
positions.
about where we need to go. If
Those who manage the localization process do
you empower someone to make
THE STATE OF LOCALIZATION REPORT

not always have control or visibility into their

organization’s budget. 41% of those involved in their own decisions and
localization do not know how much their
company spends on localization annually, while
processes and then deconstruct
42% acknowledge that they manage the entire that decision-making
localization process. This lack of insight into
strategy and spend does not just limit the work responsibility, it leads to
that can be done, but also causes friction.”
inconsistencies and likely leads to delays in
- Localization Manager, Software
delivering a completed product.

6
 With few senior leaders in roles responsible
for localization and global experience, it is no
surprise that most professionals do not feel
that localization is strategically prioritized in
Recognition
their organization. It is even less of a
More recognition for the teams responsible for
surprise that professionals involved in
managing global experience and localization
localization are not given control over what
they directly manage. The solution?
Organizations can magnify the potential of
localization by including localization
professionals in leadership conversations.

Two things are necessary to further magnify

the impact of localization: Recognition and
Empowerment. By fostering on these two, a
Global Customer Experience can grow
without blockers.
THE STATE OF LOCALIZATION REPORT
Empowerment
More leaders in executive positions to facilitate
alignment, cross-functional collaboration, and
strategy development

7
 WHERE IT HURTS
It’s clear that global experience, and
localization as a core component of that
PAIN POINTS
(BY DEGREE OF SEVERITY)
experience, are two keys to growth and
success - so what is preventing them from
1. Complex Processes
becoming a truly strategic function?

We asked our respondents about the top 2. Limited Bandwidth

THE STATE OF LOCALIZATION REPORT

localization challenges that they currently

face, and one of the most common 3. Translation Quality
responses was a lack of support. 78% said
their #1 pain point was caused by internal 4. Lack of Automation
issues. In degree of severity, the top six
pain points were:
5. Insufficient Budget 

6. Inadequate Planning

8
 Although “Awareness” did not
statistically rank in top pain points,
qualitatively it was a big topic of
interest, with internal company
awareness and understanding of
localization among challenges
most discussed:
“I absolutely feel underappreciated -
it’s always been an uphill battle. Some
teams understand better than others,
but they can only help so much - some
don’t even answer when we request
additional info or context.”
- Project Manager, Software

“The education of internal stakeholders

is frustrating - localization tends to be
forgotten when plans are being made.
Loc is often deprioritized, because it
always seems like there are more
important things to focus on, but that’s
a huge miss.”
- Localization Manager, Gaming

“There are times that it gets frustrating,

because it’s the same issues and
THE STATE OF LOCALIZATION REPORT

repeated problems over and over again.

It doesn’t matter how many times I
explain something is impossible - they
still ask about it.”
- Localization Manager, Software

9
 LSPs- SHOULD I STAY OR
SHOULD I GO?
The majority of respondents (68%) “It’s like a relationship -
report being satisfied or very satisfied
with their Language Service Providers if you realize it doesn’t
(LSPs). Most respondents are generally work, you split up. You
satisfied with the quality (62%), cost
(62%), and speed (72%) of translations have an agreement,
they receive from their LSPs. However, and you trust them,
53% are considering or actively
evaluating new language vendors but if you don’t get
(technology and LSPs combined). what you were
expecting or hoping,
you have to move on.”
62% QUALITY - Program Manager, Technology

Given this large pool of searchers,

satisfaction seems to be relative. Over
half of respondents are curious to
explore, even if their current partnerships
62% COST
are delivering on the status quo. Perhaps,
THE STATE OF LOCALIZATION REPORT

with higher global demands, the thirst to

change the status quo has arrived, and
professionals involved in localization are
looking for a partner who will truly
72% SPEED exceed demands.

10
 THE LOCALIZATION INDEX
A localization strategy - its ability to align
with organizational priorities and work
strategically towards those goals - is key for
THE STATE OF LOCALIZATION REPORT
the ability of localization to impact business
success. In building this, best practices can
inform structure, tactical implementation,
risks and opportunities, and more.
But how can a team evaluate best practices,
or benchmark its performance to industry
standard? 70% of our respondents noted
11
receiving their localization insights from
their peers, largely via word of mouth and
networking. In the Localization Index, we
consolidate the tools that professionals
around the world are using to
strategically advance their localization
programs, including ownership structures,
target locales, vendors, and growth metrics.
Use this Localization Index to benchmark
your own programs and processes.
 THE CENTRALIZATION
OF LOCALIZATION
Businesses commonly implement one of two
organizational models in a localization
function. In a centralized approach, a team
is primarily dedicated to localization and the 56%
global customer experience. Alternatively, a
decentralized approach disperses the
localization responsibilities to a team or
Respondents’ companies have a
teams that absorb localization ownership in
centralized approach
addition to their normal job responsibilities
(Marketing, Product, Engineering, etc.).

56% of respondents said their companies

had a centralized approach to localization
and 44% said they had a decentralized 44%
approach. While there are pros and cons to
each approach, a centralized approach tends
to minimize the internal pains felt around
Respondents’ companies have a
planning and complex processes. decentralized approach
THE STATE OF LOCALIZATION REPORT

12
 TARGET LOCALES
Our data shows that more than half (54%) of
organizations are localizing ten languages or
“I just did a recap
less and a little over a quarter are localizing of the crazy year
in more than 20. As previously mentioned,
2020 propelled the world into stronger digital we’ve had, and I
adoption, and localization teams know it.
While the untapped potential of localization is was SO impressed
just becoming apparent to the business world,
localization teams around the world are
with how much
working to scale up their programs to meet
the warp speed growth of demand.
we were able to
accomplish as a
If nothing else, 2020 has helped companies
realize that customers in their unlocalized team.”
target markets cannot read their website, let - Localization Leader, Gaming
alone figure out how to buy their products.
With this realization, target languages are
projected to grow substantially within the
next six to twelve months.
THE STATE OF LOCALIZATION REPORT

13
 50%
<10 L ANGUAGES

17%
11-20 L ANGUAGES

TARGET 22%
LANGUAGES
21-49 L ANGUAGES

5%
50+ L ANGUAGES

6%
UNSURE

MOST PRIORITIZED LANGUAGES

MEA
CHINESE
KOREAN

GREEK
AMHARIC

DUTCH KURDISH-SORANI

PORTUGUESE
YORUBA

THAI

SPANISH
FRENCH
GERMAN
THE STATE OF LOCALIZATION REPORT

TURKISH

HINDI
ARMENIAN

INDONESIAN
ZULU

ITALIAN
ALBANIAN
NORWEGIAN

SLOVAK HAITIAN
RUSSIAN UKRAINIAN ROMANIAN
APAC

VIETNAMESE SWAHILI
SWEDISH

SOTHO
DANISH

BELARUSIAN
CEBUANO
EUROPEAN
ARABIC BULGARIAN ESTONIAN
LATVIAN

JAPANESE
FINNISH

FRENCH CANADIAN
MACEDONIAN

POLISH
XHOSA

MALAY

14
 LOCALIZATION VENDORS
Technology has become more and more
ingrained in the localization industry,
and with more providers offering
software and services, companies have
42%
Are not using machine
a number of options. translation

However, a surprising number of

departments are not using what are OF LOCALIZATION DEPARTMENTS

commonly thought to be required

technologies and services for
successful localization. 42% of
Are not using a translation
localization departments don’t use
machine translation. 28% are not
28% management system

using a translation management

system, while 40% do not work with a
OF LOCALIZATION DEPARTMENTS
language services provider.

Ultimately, vendor management is

difficult - on average, respondents only
40%
Are not working with a
work with two vendors. Finding a language services provider
partner that can deliver the right
THE STATE OF LOCALIZATION REPORT

balance of speed, cost, and quality is

not an easy task. But 2021 has shown OF LOCALIZATION DEPARTMENTS

the right combination of technology and

services exists to deliver a good mix of
the magic trifecta (speed, quality, and
cost) without settling.

15
 MEASURING IMPACT
While creating content and having it HOW PROFESSIONALS MEASURE SUCCESS
localized is a challenge in and of itself, it is 1. New Revenue Generated
also important to understand the value and
impact that the newly translated content 2. New Pipeline Generated

has after publication. 3. New Leads Generated

4. Conversion Rates
To better understand how teams are
measuring success, we asked our 5. NPS Score
respondents to select the metrics they
6. Content Impressions
typically use to track the impact of content.
As expected, there are a wide range of 7. Search Engine Ranking
metrics used. In order, here are the top 10
8. Brand Awareness
ways professionals measure success:
9. Online Share of Voice

10. Website Visitor Volume

If you are interested in learning how to measure localization Return on Investment (ROI),
check out this Ultimate Guide to Measuring Localization ROI.
THE STATE OF LOCALIZATION REPORT

16
 2021 FOCUS
With 72% of companies increasing
THE STATE OF LOCALIZATION REPORT
the volume of localized content they
create in the past year, it’s time to
start thinking about how to scale in
order to tackle that growth.
17
We asked our respondents how they are
looking to improve their programs in
the coming months and years.
Interestingly, centralized teams report
substantially different priorities from
those on decentralized teams. Here are
areas of focus for 2021.
 While efficiency and growth are important
factors for both groups, decentralized teams
care much more about translation turnaround
time and the cost of work. While both groups
may ultimately be working to complete
similar tasks, companies without centralized
localization departments care more about
building and improving operational efficiency
and workflows.
The other priority for centralized respondents
is innovation - something that didn’t make the
list for decentralized teams. Likely, those that
spend most of their time focused on
localization see the need for strategic
innovation in language software, technology,
and services.

Centralized Teams MOST IMPORTANT Decentralized Teams

EFFICIENCY SPEED

DEGREE OF QUALITY CONSISTENCY OF QUALITY

SIMPLICITY OF WORKFLOWS EFFICIENCY

CONSISTENCY OF QUALITY COST

GROWTH & SCALABILITY DEGREE OF QUALITY

THE STATE OF LOCALIZATION REPORT

INNOVATION GROWTH & SCALABILITY

LEAST IMPORTANT

18
 NEW YEAR, NEW TARGETS
As companies continue to look for ways to improve,
2021 has also provided unprecedented opportunity
for growth for many. As organic website traffic
increases from around the world, companies are
using this as a chance to break into new locales
and translate content into more languages than
74%
ever before.

Marketing content ranked as a very high priority in

Respondents will be
2021, with 74% saying this will be a major focus.
translating marketing content
Another 70% will be prioritizing product content
localization. Other common types of content that
companies are looking to translate include mobile
UI, customer support documentation, legal, and
technical content.

While the priority of various content types differed

between centralized localization teams and
non-centralized teams, the types of content
70%
remained the same, showcasing just how
fundamental those content types are to delivering
a better customer experience in a time of high
digital demand. Respondents are exploring
loalizing product content
THE STATE OF LOCALIZATION REPORT

19
 THE LOC HUB
While localization has proven to be vital to While there is certainly movement between
THE STATE OF LOCALIZATION REPORT

business growth and international suc- roles and companies, 67% of respondents
cess, it is not considered a “common” have been in a localization role with the same
career path. However, those that do company for more than three years. An
pursue it are in it for the long haul. In this incredible 19% have been with their current
section, we have compiled data around company for more than 10 years!
career trajectory, projected industry
changes over the next five years, and
advice from experts on how to build a
successful career in localization.

20
 ADVICE FROM YOUR PEERS
One of the most beneficial ways to understand careers in global
experience and localization is to learn how its community members
have achieved their own career success. We asked our respondents
to share any tips on building a career in the industry, and we
received enough suggestions to start our own advice column.

Instead, we’ve compiled some of the best pieces of advice below to

help interested and aspiring localization professionals embark on
(or continue in) their careers:

“Do not be afraid of “Learn where localization fits

technology, use it to your
advantage.”
- Localization Lead, E-Commerce
“Don’t just translate- think
about the context.”
- Marketing Manager, Software
“Listen to the voice of the
customer.”
THE STATE OF LOCALIZATION REPORT
into the larger business
conversation. A lot of
companies don't know what
localization is, but know that
they want to succeed
internationally, so the more
you can bring numbers and
data to the table when
discussing localization with
stakeholders, the better.”

- Localization Manager, Manufacturing - Localization Leader, Media

“Never underestimate “Interpretation and

cultural perspectives and
their influence on language.”
- Program Manager, Cybersecurity
translation are two different
skills requiring different
types of training.”
- Content Lead, Software

21
 WHAT ’S AHEAD
We asked our respondents how they felt their job
might change in the next five years, and we were
“I’m unsure of how
presented with two opposite trends. While one things will change.
group expects high growth and job stability as
localization becomes more and more important, There are so many
the other (notably smaller) group is unsure due to
a lack of clarity about what is coming next. opportunities and
Many respondents are excited for what’s to come, challenges in front
both in their personal careers and for the industry
as a whole. Many also expect more responsibility
of us.”
- some expect to become senior managers and
directors, while others are hoping to become
more involved with growth and development
across the business.

With so much current growth, professionals

involved in global experience and localization are
excited for what the future holds.
THE STATE OF LOCALIZATION REPORT

22
 FINAL THOUGHTS
Now more than ever, Much has happened as a result of the
pandemic, from changes in consumer
companies need a behavior to the way we live our lives. From
a business perspective, it is unclear which
unified strategy to shifts are temporary and which will be
long-lasting.
tackle all aspects of
Achieving a successful Global Customer
global customer Experience under any condition means that

experience and teams involved with customer

experience and localization need to be
international growth. involved early, often, and at higher levels.

There have been and will continue to be

challenges. Those hurdles, however, can be
minimized by prioritizing departments that
directly have an impact on company brand,
customer experience, and revenue -
including localization. The professionals
THE STATE OF LOCALIZATION REPORT

involved in global experience and

localization have a vision for the future.
With the right strategic support, these
individuals are the key to unlocking the
markets necessary for global growth.

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