Technology Innovation and Widespread Internet Adoption Driving Globalization and Localization Services Market Will Reach $10.3 Billion by 2005, IDC Says

FRAMINGHAM, MA – DECEMBER 19, 2001 – The globalization and localization services (GLS) industry is a dynamic and evolving one. A new report published by IDC estimates the worldwide demand for GLS – driven by technology innovation and the widespread adoption of the Internet and ebusiness -totaled $3.8 billion in 2000. IDC expects this market to grow at a healthy rate and forecasts GLS spending will jump to $10.3 billion by 2005.


"Globalization and localization solutions assist companies in bridging borders, cultures, and multilingual environments," said Alexander Motsenigos, IDC’s Globalization and Localization Services analyst. "More importantly, these solutions enable companies to fulfill the most fundamental need for global understanding, communication, and interaction between and among an enterprise and its customers, suppliers, partners, and employees. This basic requirement forms the driving vision transforming the industry today."

In 2005, the United States will comprise the largest market opportunity in terms of GLS spending followed by Western Europe. Combined, these markets will account for 78.1% of the worldwide total. Despite the larger current market shares enjoyed by the United States and Western Europe, the highest growth rates belong to other regional segments. Asia/Pacific is growing the fastest followed by the rest of the world (ROW) and Latin America.

The market for localization, translation, and interpretation (LTI) services will comprise the largest part of the GLS market in 2005. Globalization strategy consulting (GSC) and internationalization services represent the second- and third-largest markets. These markets are growing faster than the LTI services market.

The fastest-growing market is the cross-lingual applications (CLA) services segment, IDC’s study shows. Not surprisingly, CLA services, which represent services provisioned around multilingual content management systems, machine translation (MT), and linguistic tools (including ASP models), comprise the smallest market. However, IDC predicts this market will reach $286.5 million by 2005.

Key Recommendations

Key factors necessary to be a successful GLS player include developing a globalization practice that can influence policy. "Globalization business consultancies involved in governmental and policy-making levels can be more effective at assisting existing or prospective clients in gaining a deep understanding of the legal and regulatory undercurrents that may affect their capacity to operate effectively within particular markets," Motsenigos said.

Other recommendations identified by IDC include:

· Positioning the service organization in specific niche markets

· Preparing for the wireless opportunity

· Partnering with cross-lingual information retrieval and machine translation vendors to target the esupport market

IDC’s report, Worldwide Globalization and Localization Services Market Forecast and Analysis, 2000-2005 (IDC #25952), defines the opportunities available to service providers that are looking to capitalize on the growing demand for globalization and localization services (GLS). Specifically, this report presents a comprehensive and multidimensional market sizing and forecast of the worldwide GLS market. GLS market forecasts are provided by service category and geographic region from 2000 to 2005. Furthermore, the major revenue drivers, revenue inhibitors, and trends of these segments are discussed. This document also makes predictions and recommendations on the state of the GLS market. In summary, this report is a valuable tool for service providers that want to understand and compare the market opportunities in the four major industry areas presented in this report.

To purchase this document, call IDC's volume sales hotline at 508-988-7988 or email

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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