Most Organizations Prioritize Resilience Over Full Digital Sovereignty

Capgemini, a global business transformation partner, reports that most organizations now prioritize resilience over total technological independence when it comes to digital sovereignty. According to a new report by the Capgemini Research Institute, 93% of organizations worldwide have discussed digital sovereignty at board level, recognizing its importance in an increasingly interconnected technological landscape.

The report, titled "Digital Sovereignty: From Policy Ambition to Executive Imperative," surveyed 1,300 business and technology executives across the US, Europe, and APAC. It found that 59% of organizations believe full digital sovereignty is not a realistic goal. Instead, businesses are focusing on creating resilient interdependencies, where they retain control over critical technologies and form strategic partnerships.

Karine Brunet, Chief Operations and Delivery Officer at Capgemini, explained, "Today's organizations operate in highly interconnected technology ecosystems where complete independence is rarely achievable. Digital sovereignty is therefore not about full autonomy but more about ensuring organizations have a clear understanding of their technology dependencies to regain control and flexibility to manage risks."

The research indicates that operational resilience to geopolitical volatility and disruption is the leading driver of digital sovereignty initiatives, with 80% of respondents citing it as their top priority. AI has emerged as a key focus area, with 75% of organizations identifying it as a crucial component in their sovereignty strategies. Sectors such as aerospace and defense and transportation, which manage critical infrastructure, information, or operations, are placing particular emphasis on AI.

However, the path to digital sovereignty is not without challenges. Visibility into technology dependencies remains a significant issue, with only 14% of organizations reporting end-to-end visibility into their broader technology ecosystem. Additionally, reducing dependence on critical technology providers is hindered by lengthy switching timelines and limited alternative options. According to the report, 36% of organizations report that transitioning away from a critical provider would take more than 12 months, and 10% say they have no viable alternative provider at all.

Despite these challenges, organizations are taking action. Nearly four in five organizations are executing or building a strategy to enhance their digital sovereignty, while a further 20% expect to put one in place within the next year. This investment reflects mounting concern over maintaining critical business operations amid an increasingly uncertain geopolitical environment. More than three-quarters of organizations are highly concerned about their ability to maintain operations.

In terms of regional differences, the report notes that while digital sovereignty is most associated with risk mitigation and resilience-building in APAC (41%), continental Europe (52%), and the UK (56%), US organizations (52%) primarily view it through a compliance lens. However, regardless of region, organizations broadly agree that digital sovereignty is not about complete technological independence. Two-thirds globally define digital sovereignty in terms of resilient interdependence, with this view being stronger in Europe (75%) than in the US (50%).

Brunet added, "The real challenge will be to build resilience without sacrificing competitiveness, to drive innovation and long-term growth. Organizations need to strike a balance between maintaining critical capabilities and remaining agile in a rapidly changing technological landscape."

The report highlights that while digital sovereignty is a global business priority, the strategies employed vary across regions. In the US, organizations are more focused on ecosystem collaboration and industry partnerships to develop shared capabilities. In contrast, APAC and Europe are more concerned about maintaining critical business operations amid geopolitical uncertainty.

In summary, the findings underscore the evolving approach to digital sovereignty, emphasizing a pragmatic, resilient strategy over the pursuit of complete technological independence. The report provides a roadmap for organizations to navigate the complexities of the digital landscape and build the best possible future, balancing risk management with innovation and growth.