Localization enables your company to enter new market and to compete effectively, defeating language and cultural barriers of your target market. Localization is sometimes written as l10n, where 10 is the number of letters between l and n.
Localization is an adaption of a product, application, website or document content to meet the locale. Locale is the combination of language and culture of a specific target market. In different locales there are linguistic, cultural, technical differences and conventions, which can be reflect on data formats, dates (full and abbreviated names for weekdays and months), number formats (symbols for the thousands separator and decimal point), times (indicators for 12-hour time) or even spelling. Take for example the UK spelling of "localisation", which is "localization" in the USA.
Since different cultures interpret information variously the translation process extends beyond regular word to word translation. In localization process translators assure a high quality translation that reflects the intent of the text, and it reads and feels as if it was written in the target language.