I've been reading Multilingual Computing & Technology for a very long time. Good article in their recent issue, Challenges of Localization Project Management: Educators interview language industry professionals about technical, logistical and business issues. I love practical field interviews.

Some of the bullet points:

Technical Challenges

1. Large-scale CM and translation tools 
2. Compatibility among CM systems, databases and localization tools
3. Developing systems/tools that let vendors work better, faster and cheaper
4. Tools that can handle XML, scripting and bidirectional languages
5. File transfer automation
6. Bug tracking in multiple languages
7. Need more localization professionals with technical expertise

Logistical Challenges

1. Not enough headcount at clients or vendors
2. Missing or incomplete localization kits
3. Vendors have responsibility but not authority
4. Educating clients about localization process
5. Late scheduling and/or lack of planning
6. Network connections and time differences
7. Efficiently managing increasingly larger translation projects

Business Challenges

1. Competing in the current economy
2. Marketing localization services to new clients
3. Doing more with less
4. Marketing-driven localization schedule
5. Having clients involve vendors in core product development
6. Ensuring payment for completed projects
7. Finding localization professionals with high technical, language and project management skills
8. Moving localization into the mainstream

more...

How many software engineering projects go global at some point? Lots.