Firms will spend an increasing amount on tailoring their Web operations for international markets, according to forecasts. But experts advise firms to think through their strategies carefully before they start to adapt sites for local markets.

According to research from US analyst firm Allied Business Intelligence (ABI), companies will spend $3bn on localising Web sites in 2007, a compound annual growth of 36 percent from the $500m spent in 2001. ABI's Language Translation, Localization and Globalization report also predicts that the global market for language translation will be worth $9.6bn in 2007, up from $7bn last year. It says that multilingual Internet subscribers, and increasing use of the Internet and e-commerce will account for the increased spending by organisations.

Phil Scanlan of translation company WorldLingo said more firms will develop globalised e-commerce strategies. "Some firms are trading electronically on an international basis already, but there is scope for growth over the next 10 years," he said.

Scanlan said that businesses operating internationally online will have to allow users to communicate in their own languages, whether for reading information or talking to customer service staff via chat facilities.

However, firms will also need to localise Web sites in other ways to attract users in each country, he argued. "It's not just about translation. Firms need to be able to process payments in the format and currency customers are used to," said Scanlan. Firms also need to consider logistical issues such as the time needed to deliver goods and the cost of returned items, he noted.

One firm that is keen to take advantage of the global nature of the Internet is electronic payment company PayPal.

PayPal plans to launch a multi-currency service this month, which will allow transactions in dollars, euros and pounds. The new service will allow a customer in the UK to pay for goods from a US Web site in pounds, and the amount will automatically be translated into dollars for the seller, for example. PayPal can be used by e-traders or auction sites to accept online payments.