Centralized vs Decentralized Localization: Making the Right Choice

Discover the differences between centralized and decentralized localization and learn how to choose the best approach for your business.

Understanding Centralized Localization

Centralized localization is a localization strategy where the localization process is managed from a central location within the org. This means that all translation and adaptation tasks are handled by a central team or department.

One of the key opportunities of establishing a centralized localization function is the ability to maintain consistent messaging and branding across multiple markets. With a central team overseeing the localization process, there is greater control over the quality and accuracy of translations. 

A main benefit of centralized localization is the potential for cost savings. By consolidating the localization efforts, businesses can avoid duplicating translation work and leverage economies of scale.

A second major benefit is the holistic visibility of inputs and outputs. This not only allows to defne a set of metrics to measure and drive loc efficiency and effectiveness. It also allows to connect localization outputs to the business strategy for the different markets, making localization not only manageable, but directionable. This directionability is what will enable localization to support business growth.

However, there is a generalized concern in scale-up environments about central solutions negatively impacting the speed of product development due the loss of a level of autonomy. 

This concern, although valid, should not block a decision about centralizing the localization function, because the gains are clearly higher than potential losses. Done smartly, localization should not only be centralized, but also systematized and templatized. This approach not only removes the concern of loss of autonomy and speed, but in fact supports team autonomy, speed in product development and even international product management, by enabling manegeable differenciation in market adaptation. 

A bigger challenge might actually be the slight change required in how product managers understand their role when it comes to international product management. It should be a main interest for the product manager to also drive an adequate international version of the original product, and this requires a higher understanding of what the local versions should be - not just a replica of the original one but a version with a much stronger local feel, which might require a higher level of adaptations than just translating the copy.

Other potential drawbacks, like the lack of local market expertise in the central team, can be easily overcome by working closely together with the local teams and resorting to documentation like local styleguides. This is necessary for scalability anyway, so it can be used for centrality as well.

In summary, understanding centralized localization involves recognizing its benefits in terms of consistency, cost savings, manageability, directionability and market differenciation as well as its challenges in terms of the role of the product manager.

Exploring Decentralized Localization

Decentralized localization, on the other hand, involves distributing the localization process across multiple teams or departments. Each team or department is responsible for managing the localization of their specific market or region or for their specific channel.

One of the main advantages of decentralized localization is the ability to leverage local market expertise. With teams located in each target market, businesses can ensure that their content is culturally relevant and resonates with local audiences.

Decentralized localization also seems to offer the potential for faster turnaround times. Since each team is focused on their specific market, they can prioritize and expedite the localization process.

However, decentralized localization may also present challenges. One potential drawback is the risk of inconsistent messaging and branding across markets and channels using the same language. Without a centralized team overseeing the process, there is a higher chance of discrepancies in translations, especially when there is a need to create a differenciation against the original experience. The user, however, will notice these inconsistencies or even incoherences when journeying through the experience and this comes with a cost in terms of recognizability or, worse, trust. 

Another challenge of decentralized localization is the potential for duplicated efforts and increased costs. Each team may independently translate and adapt content, leading to inefficiencies and unnecessary expenses. In this context, there is almost always also not the required expertise in the team to really handle localization complexity, so solutions are normally not explored enough to in fact achieve full efficiency of the tools used. That´s why then expectations of a fast turnaround or full flexibility are not really met. The need for differenciation, that is often felt, is also not really achievable, because that requires an early on approach on product side to accomplish that. Without a central team, product is generally not ready to handle a higher level of differenciation per market or language and the product manager may even not see that as part of their role.

Another important issue is the lack of scalability that the internal teams often face. If translations are expected to be done by the marketing teams but without full dedication to the translation effort, there will not be enough internal capacities for all languages in all teams and channels, leading to high backlogs, long turnaround times, a delay in deliveries or releases or even a lack of full language coverage.

Exploring decentralized localization assumes an understanding of its benefits in terms of local market expertise. But these need to be strong enough in order to serve as a tradeoff for the losses in terms of consistency, potential cost inefficiencies, overburndening of internal teams, loss in user trust and ability to really create a global-ready product that allows for a certain level of differenciation per market to drive growth.

Choosing the Right Localization Strategy

Choosing the right localization strategy depends on various factors. Firstly, businesses should consider the kind of global presence they aim to have, the kind of user experience they wish to provide and how user-centric they want to be.

Secondly, the level of local market expertise required should be taken into account and how sustainale and scalable it actually is to involve the marketing teams in all translation and localization needs. Turnaround times should also be considered. 

Thirdly, the level of manageability and directionability of localization towards the business goals should be considered, allowing the localization manager to understand what goals localization should be serving.

Lastly, cost considerations should be evaluated. Consolidating localization efforts may lead to important cost savings and even overhead.

A decentralized localization function might seem more appealing as a way to start localization in a new company. But looking back at those efforts and knowing what we know now from those experiences, we gained new knowledge and currently have a bigger picture. It is my understanding that a smartly done centralized localization function would tick more boxes for the org than a decentralized function, including for a start-up.

In conclusion, choosing the right localization strategy involves carefully considering factors such as global presence, global-readiness, local market expertise, turnaround times, cost considerations, future readiness, as well as past experience for similar companies.

A good localization manager is the right person to help you with this.