What difficulties are associated with the process of localization?
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With localization do you mean making goods, services and developing applications locally with local resources? If that what you mean by localization, then there are multiple challenges that you need to consider:
1) The IT industry maturity within your local market. Can it provide end to end goods/services? What is the level of sophistication? What goods/services need to be imported?
2) The IT market in terms of companies that can provide such goods/services. Do they rely on foreign expertise or use local talents.
3) Developing local products and services can take time and involves investments in multiple fronts. It is important to weigh the pros and cons.
Hope the above helps.