A study carried out by the Localisation Industry Standards Association and global information management provider SDL, which is best known for its translation and terminology management software, found that global business growth is hindered because decision makers have little knowledge of core technology such as content management, terminology management, and budgets associated with global communications.

Terminology management refers to the process of defining the important terms and phrases used within a company. It covers aspects such as how these are used in context, how they are written, and how they are translated so that they mean the same thing in multiple languages.

Even though respondents were aware of the importance of terminology management in driving brand consistency and aiding customer loyalty, few had implemented processes or software to manage it. 56% said the greatest benefit of terminology management would be consistant management of a global brand, while 32% identified the ability to deliver the right global content to the right people at the same time as its key focus.

However, only 46% had a dedicated terminology manager and where they were in place they were junior positions. Less than half of the respondents (47%) knew how much they spent on globalization. In this context, globalization refers to localization in terms of all aspects of translation from the text within software code, to manuals, sales and marketing collateral, and web sites, plus aspects such as terminology management.

Michael Anobile, chairman of the Localisation Industry Standards Association, said: The picture is that corporations are not investing in the infrastructure and processes required to effectively communicate with global audiences. Far too often we see companies approaching this in a piecemeal fashion. Terminology is not being managed on any systematic basis, but rather it is treated as part of the localization process and dealt with on an ad hoc basis.

A second survey, carried out by Forrester Consulting on behalf of SDL, showed that organizations were struggling to manage their brands on a global scale. Less than a quarter of American companies were able to offer a consistent online experience in multiple languages. The situation was somewhat better in Europe but even there only 54% of companies said their customer experience was consistent across all languages. The biggest problems were language and translation issues, plus cultural differences.

It appears that globalization has been a double edged sword for American businesses. While the internet has removed boundaries between markets, the need for cultural and linguistic awareness is more pressing than ever, said Chris Boorman, chief marketing officer at SDL.