Also known in industry jargon as "L10n", localisation comprises all processes used to modify a product or service so that it can be distributed in international markets. This modification relates not only to the target market’s cultural and formal standards but also, and most importantly, to its economic, technical and legal conditions.

Localisation of a product is most successful when the product is already freed from cultural norms during its development. This process is known as internationalisation or "i18n". A non-internationalised product requires modifications or new developments as soon as it is localised – for example enlarging all dialogue boxes in a localised user interface because the target language is longer than the original text. Localisation and Internationalisation are part of the strategic corporate task, Global Content Management.

The proper processing of linguistic content (the translation) plays an all-important role in localisation. The more the user has to interact with the product, the greater should be the effort required to localise it.

Essentially, as a manufacturer you have three options for localising your products or services: you use your own personnel, employ a distributor, or contract with a Localisation Services Provider (LSP). Each method has its advantages and disadvantages – choosing the right method depends on your strategy and marketing.