In-house vs outsourced localisation: Which delivers better ROI?

As your business expands into new markets, localisation stops being a side task and becomes a strategic function. At that point, one of the most significant decisions you’ll face is this:

Should you build an in-house localisation team, or outsource to a specialist language service provider (LSP)?

If you get it right, you’ll build a lean, scalable localisation setup that delivers high-quality content quickly, efficiently, and with strong ROI. 

However, get it wrong, and you risk being locked into inefficient workflows, incurring escalating costs, and missing growth opportunities while struggling to demonstrate the value of your investment.

This guide walks you through the key considerations, trade-offs, and common pitfalls so you can decide which best fits your content, team, budget, and growth plans.

And if you haven’t already, download our Comtec Advisory brochure to learn more about our services, approach, and how we can support your localisation goals.

Index:

What do we mean by in-house vs. outsourced localisation?

Table of pros & cons

How to choose the right model for you

7 commercial pitfalls to avoid

Making the decision: 5 key questions to ask

Ask the experts

When we refer to in-house localisation, we typically mean a model where the business manages the entire localisation process internally, often using its own Translation Management System (TMS). That might include an internal team of linguists, or a network of freelancers and external vendors who log into the TMS to complete projects. 

In this setup, the company retains complete control over tools, workflows, vendors, and quality, while also assuming responsibility for infrastructure, onboarding, and day-to-day project management.

Even with an in-house setup, many companies benefit from an LSP’s support for tasks like overflow capacity, specialist content, or advising on workflow design. 

On the other hand, outsourced localisation involves handing over the process to a specialist partner; usually a language services provider (LSP). 

The LSP manages everything from linguist selection and workflow design to delivery and quality assurance, often using their own tools and systems. Your internal team sets priorities, reviews deliverables, and leaves the rest to the experts. 

This model appeals to companies seeking a scalable, low-touch solution with comprehensive end-to-end support.

Then there’s the increasingly popular hybrid model, which blends elements of both. This approach is particularly common for businesses expanding into multiple markets or managing diverse content types and priorities.

Hybrid setups can take many forms, including:

• Using a TMS with a pool of freelancers or LSPs for day-to-day content, but outsourcing large, high-stakes projects (like product launches or campaigns) to an LSP using their own workflows.
• Splitting responsibility by content type. For example, managing help centre articles and UI strings internally, while outsourcing creative or multimedia localisation to specialist partners.
• Bringing in LSPs to provide overflow capacity during peak periods or new market launches.
• Using an LSP to help set up workflows and tooling, then managing ongoing translation work with freelancers in-house.

Done well, a hybrid model can offer the best of both worlds: control, scalability, and flexibility. However, success depends on clearly defined roles, responsibilities, and processes. Without them, the hybrid model quickly becomes chaotic and costly.

Here’s a handy snapshot summarising each localisation method’s pros and cons:

Need help weighing up the right localisation model for you?

Download the Comtec Advisory brochure to learn how we help businesses assess their setup, develop a business case, and select the optimal ROI model.

There’s no one-size-fits-all answer, but after decades in the localisation space, we’ve seen what sets successful, high-ROI setups apart.

Choosing the right model depends on a mix of commercial, strategic, and operational factors.

In this section, we’ll walk you through the key questions to consider so you can decide what works for your content, your team, and your long-term return on investment.

1. Commercial factors

• How fast do you need to show a return on your investment? The annual cost of a TMS in the UK can vary significantly based on the specific software, features, and user needs. The numbers can add up easily to a 5-figure amount per year (or higher for enterprise solutions) or take the form of a one-time purchase for perpetual licenses. 
• Are you investing ahead of demand, or scaling to meet anticipated growth? Do you have the budget to invest ahead of that return?
• Is your proposed investment aligned with the size (and value) of your global markets?

2. Content volume and complexity

• Do you have high-frequency, low-risk content (e.g. help centre articles, product updates)? In-house with automation and MT might work.
• Or, do you have brand-sensitive, high-impact content (e.g. marketing campaigns)? Consider expert transcreation via a trusted LSP.

3. Internal capacity and expertise

• Do you have a localisation lead? Project managers? In-house linguists?
• If not, outsourcing may be a faster and more cost-effective option, especially in the early stages of global expansion.

4. Time-to-market pressures

• Can your internal team turn things around fast enough?
• LSPs often bring capacity and process maturity that accelerate progress, especially for launches, campaigns, or market entries.

5. Technology and workflow maturity

• Do you already have a TMS or localisation tech stack?
• If not, outsourcing buys you time to build internal processes while still delivering at scale.

Need support while you get your localisation solution up and running?

The right LSP can provide valuable support even if you’re building an in-house setup. 

From transcreation and campaign rollouts to managing overflow capacity and time-sensitive launches, working with an expert partner not only helps you meet demand without straining your team, but also provides a trusted guide through the noise and hype of AI.

Here are some of the most common (and costly) missteps we see businesses make when structuring their localisation setup:

1. Building in-house too soon: Hiring a team before defining your workflows or testing the market can lead to wasted spending and poor return on investment (ROI).
2. Choosing an LSP without clear goals: It’s hard to hold external partners accountable or measure ROI impact without defined success criteria or KPIs.
3. Buying a TMS based on a sales demo: Demos, by design, only show you the highlight reel. But once you’re locked into a 12-month contract, you may find the platform doesn’t support your actual workflows or only uses a fraction of what you’re paying for.
4. Failing to future-proof your tech choices: If you’re changing your CMS, launching new products, or expanding into new channels in the next 12 months, make sure your localisation setup can evolve with you. Many businesses are stuck when their chosen solution can’t integrate with the next growth phase.
5. Underestimating the hidden costs of underused technology: Investing in localisation platforms or tools without full internal adoption can quickly drain the budget. Unused seats, underutilised features, and poorly integrated systems all add up.
6. Doubling up on spend across teams: It’s surprisingly common for one part of the business to adopt a TMS while another continues to work with freelancers or agencies. The result? You’re paying twice for localisation. 
7. Mixing models without clarity: Hybrid approaches can work brilliantly, but only when roles, responsibilities, and handoffs are clearly defined. Consider having well-defined processes so that everyone knows when a piece of content is translated in-house versus when it’s sent to a freelancer or your Language Services Provider (LSP).

Want to avoid the most common localisation missteps?

Our Comtec Advisory brochure demonstrates how we support clients in future-proofing their technology choices, streamlining workflows, and maximising the return on their investment.

We’ve seen localisation setups of all shapes and sizes, but the most successful ones strike the right balance between investment, speed, and market opportunity.

Before you commit budget or headcount, here’s a checklist of the five most important questions to ask before making your final decision, based on the most commercially successful implementations we’ve helped shape.

If you’re unsure how to answer these questions (or if “it depends” feels like the most honest response to some of them!), this is precisely where the right external partner can make a difference. 

A localisation consultancy like Comtec Advisory brings the experience, clarity, and commercial insight to help you assess your options and move forward with confidence. 

We’ve worked with global brands to design scalable localisation models that balance cost, speed, and quality, and we can help you do the same.

At Comtec Advisory, we help businesses make smart, evidence-based decisions about their localisation setup. 

In our capacity as Comtec Advisory, we are not acting as an LSP, and we are not trying to sell you a TMS. We’re independent localisation experts who’ve helped global brands design localisation models that balance cost, quality, and scalability.

We’ll work with you to:

• Audit your content and current workflows.
• Evaluate your internal capabilities and tech stack.
• Assess the feasibility of in-house vs. outsourced models.
• Recommend a structure that supports your global growth goals.
• Help you plan the team, tools, and budget to deliver it.

Whether starting from scratch or looking to optimise what you already have, we’ll help you build a localisation setup that works.

Download our brochure or get in touch below, we’re here to help!