IDC Predicts Aggressive Growth in the Globalization and Localization Services Industry Over the Next 12 to 24 Months
FRAMINGHAM, MA – JULY 25, 2001 – Although still in its infancy, the globalization and localization (G&L) industry is transforming the world’s ebusiness economy. IDC predicts strong growth will occur in this industry over the next 12 to 24 months. In fact, according to a survey of 20 worldwide leaders and innovators of globalization and localization services, these vendors expect to double their service revenues approximately every 2.6 years. Service revenues among these 20 vendors are projected to jump 39% to $853 million in 2001 – following 23% growth in 2000 – and surge to $1.7 billion by 2004.
"With the emergence of the Internet and ebusiness as a viable mode of conducting commerce, companies have been enabled and empowered to operate on a highly leveraged worldwide scale," said Alexander Motsenigos, senior analyst for IDC’s eGlobalization and Localization Services research program. "However, many businesses are at an immature stage in understanding how to interact within other cultures and countries, and they are unfamiliar with the range of challenges involved in establishing and maintaining a global enterprise."
The industry has undergone significant consolidation over the years. According to IDC’s survey, 60% of the 20 companies interviewed made at least one acquisition since their inception. These 12 firms are responsible for consolidating 86 companies in total. "Consolidation will continue to reshape the G&L marketplace, adjusting to changing customer requirements, solution dynamics, and industry economics," Motsenigos said. In addition, IDC believes new G&L companies will emerge to fulfill discrete niche opportunities in the space.
According to IDC, of the 20 companies surveyed, Lionbridge reported the highest service revenues in 2000, at $105 million. However, Berlitz GlobalNET was a close second at $104 million, followed by Mendez, Bowne Global Solutions, and ALPNET, respectively.
IDC’s report Leaders and Innovators in the eGlobalization and Localization Marketplace: 20 Companies Shaping Global eBusiness (IDC #B25014) offers comprehensive profiles and analysis of the public and private companies driving the formation and direction of the emerging globalization and localization solutions marketplace. The companies profiled include Lionbridge, Berlitz GlobalNET, Mendez, Bowne Global Solutions, ALPNET, Alis Technologies, ArchiText, Basis Technology, eTranslate, GlobalSight, Idiom Technologies, Logisoft Interactive, SDL International, SimulTrans, STAR Group, SymbioSys, Trados, Translations.com, Uniscape, and Vastera. Key industry definitions are provided, and 10 major service provider segments are summarized. This report also proposes a set of recommendations to G&L vendors. To purchase this report, call 508-988-7988 or email firstname.lastname@example.org.
IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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