International public procurement, worth an impressive US$13 trillion globally, remains fairly geographically localized. One of the reasons for this is language barriers, which a savvy organization can easily overcome to explore new markets and significantly increase its bottom line. 

In essence, when governments publish tenders solely in local languages, they inadvertently create a barrier that blocks international competition. 

For organizations prepared for this, it represents a strategic opportunity rather than an obstacle. By developing multilingual capabilities, businesses can access procurement opportunities their competitors simply cannot see. 

In this article, we take a closer look at what constitutes linguistic readiness in international tendering, how you should strategize for this, and much more. 

Understanding the language advantage in public procurement

The global public procurement market remains fragmented, and language differences seem to be an unnecessary barrier. A recent study published in The Quarterly Review of Economics and Finance underlines this pattern: when Georgia (the country) mandated English translations for tenders, foreign firm participation pretty much doubled overnight. The study identified the following conclusions:

  • Language barriers create significant challenges in accessing and participating in international markets.
  • Language barriers lead to unnecessary hurdles, as a result decreasing participation rates in public procurement processes.
  • Eliminating language barriers leads to more bids from foreign suppliers, potentially leading to better ROI and outcomes.
  • Governments aiming to attract more foreign bidders and maximize procurement efficiency should consider publishing tenders and key procurement documents in at least one global language in addition to the local language.
  • The effect is strongest for goods procurement, with a more moderate effect for services and minimal impact on construction contracts.
  • Governments can unilaterally reduce these barriers by publishing procurement information in widely used international languages. This represents a relatively low-cost reform that can significantly increase competition, potentially leading to better procurement outcomes and increased international trade. 

Practical recommendations for businesses applying for international tenders

The evidence is clear: direct cross-border procurement accounts for just 5% of all contract awards in developed economies such as the European Union, with even lower rates in construction (2-3%) and slightly higher figures for supply contracts (5.5-8.6%). 

Even when including all participation methods – direct bidding, foreign subsidiaries, and subcontracting – foreign companies capture only about 14% of the available opportunities in markets like the EU. 

This massive disparity between local and international participation clearly suggests that there is an opportunity gap worth billions of dollars annually for businesses that are prepared to do the work involved in applying for cross-border tenders.

Selective tendering strategy

Being selective is key – chasing every opportunity is likely to be counter-productive. We suggest focusing on targeted tenders, which will lead to better win rates, ensuring that the returns on your time investment are good. Always conduct a rigorous bid/no-bid analysis before investing resources. Ask yourself:

  • Have you won similar deals previously?
  • Can you genuinely be competitive in this market?
  • Is the tender worth pursuing given your organizational goals?

Only submit tenders if you believe you can and should win them. This selectivity allows you to concentrate efforts on contracts that offer the greatest prospect of success, whether by sub-sector, size, geography, or technical requirements.

Research-driven approach

Needless to say, misunderstanding buyer requirements is a huge problem when applying for international tenders, which can lead to wasted time and resources. Successful tender responses demonstrate from the outset that you comprehend the client's specific needs. Before submitting:

  • Study the tendering organization thoroughly
  • Identify their precise requirements and pain points
  • Recognize why your company is uniquely positioned to address these needs.

 Research the market's procurement culture. Different regions have different evaluation priorities and communication expectations that can significantly impact success rates.

Strategic partnerships

Consider collaborative approaches to overcome limitations. When lacking the necessary resources or skills to provide full service requirements, joining forces with other firms allows you to address these gaps and pursue larger, higher-value contracts. 

Forming consortia also combines complementary strengths, opening doors to opportunities otherwise inaccessible. 

Many procurement systems now explicitly facilitate these approaches. Tenders are increasingly broken into smaller, granular lots, allowing companies to compete for specific work packages in technical and geographical areas where they excel. 

Documentation excellence

Preparation is paramount. Study bidding documents meticulously, paying particular attention to the Instructions to Bidders and Bidding Data sections. Non-compliance with the stated conditions often results in automatic rejection regardless of competitiveness.

Ensure your bid is substantially responsive and conforms to all the terms, conditions, and specifications without any material deviation. Include all the requested information regarding eligibility, qualifications, experience, and financial capacity. Detail your technical capabilities, methodologies, team composition, and previous relevant experience. 

Showcase multilingual capabilities

There is a strong case for an organization’s multilingual capabilities being an important differentiator in international procurement markets. 

It is likely that investing resources into a multilingual strategy will yield impressive returns and, almost certainly, access to a broader spectrum of projects and clients. Here are some of our recommendations:

  • Start by documenting your language assets. Most companies waste their multilingual capabilities by burying them in HR files instead of showcasing them as value-creating assets. Construct a matrix that maps language proficiencies against target markets. Consider quantifying their commercial value.
  • Create dedicated cross-border bid teams. Multilingual specialists can identify subtle contractual nuances that automated translation tools inevitably miss – nuances that frequently determine bid outcomes. Even a single mistranslated technical specification can trigger automatic disqualification.
  • Highlight risk mitigation. The ability to navigate local regulations in their native language dramatically reduces compliance risks. Document specific instances when language skills prevented costly misinterpretations in previous projects. This transforms abstract capabilities into a concrete competitive advantage.
  • Consider incorporating cultural intelligence training within your organization. As you expand your operations abroad, it is essential to have a decent grasp of the cultural norms in your areas of interest, tendering standards, communication expectations, and negotiation styles across these markets. 

The bottom line

While multilingual capabilities are an important differentiator in the current market, it’s worth underlining that this arbitrage will not last forever – it’s an opportunity that has to be seized quickly.

Cross-border procurement participation rates remain absurdly low – 5% in developed economies – creating market inefficiencies that can translate directly into profit opportunities for linguistically equipped organizations. When the country of Georgia mandated English translations, foreign participation doubled overnight. That was not a coincidence; it was causation.

The choice is fairly straightforward: companies can choose to treat language as a peripheral concern and watch competitors capture cross-border opportunities or recognize linguistic capabilities as being central to procurement strategy and therefore unlock access to markets worth trillions.

For organizations with global ambitions, the path forward could not be clearer.