Is full digital sovereignty achievable? 59% of businesses think it's an unrealistic goal – but that shouldn’t stop them from trying

Digital sovereignty is now a key focus for the C-suite, but new research shows organizations aren't confident they can fully achieve these goals.

In a study from Capgemini, 44% of organizations ranked sovereignty as a board-level priority, with efforts on this front accelerating across the US, Europe, and APAC. Nearly four-in-five are “executing or building a strategy”, for example, with a further fifth expected to put one in place within the next year.

Capgemini said this investment focus reflects mounting concerns over whether organizations can maintain critical business operations in an “increasingly uncertain geopolitical environment”.

Four-in-five respondents specifically highlighted geopolitical volatility and disruption as the “leading driver” of digital sovereignty initiatives.

Concerns over strained transatlantic relations have prompted calls to reduce reliance on US tech providers in recent months, and it’s a viewpoint that’s gaining significant traction across Europe.

The jury’s out on digital sovereignty

Despite this sharpened focus, more than half (59%) of organizations think that achieving full digital sovereignty is an unrealistic goal.

There are a number of contributing factors here, the study found. In particular, a concerning number of respondents revealed they are chronically overdependent on foreign technology solutions and suppliers.

Others, meanwhile, highlighted lengthy switching timelines as a key concern. More than one-third (36%) of respondents said that transitioning from a critical provider would take more than 12 months. One-in-ten said they have no “viable alternative provider” at all.

Limited supply chain visibility is another key hurdle when it comes to bolstering digital sovereignty. Indeed, 86% said they have “significant exposure to foreign or externally controlled supply chains”.

The result is that IT leaders now find themselves wedged between a rock and a hard place when it comes to sovereignty. From a practical and financial perspective, efforts to achieve full sovereignty just aren’t viable in many cases.

“Today’s organizations operate in highly interconnected technology ecosystems where complete independence is rarely achievable,” said Karine Brunet, chief operations and delivery officer at Capgemini.

Michael Murphy, Deputy CTO at Arqit, agreed that full digital sovereignty could be an unrealistic goal for many organizations – and pursuing it could actually be counterproductive.

Capgemini’s study noted that achieving full sovereignty could actually harm competitiveness, for example, although more than half believe they can achieve these goals without making sacrifices on that front.

“Most organizations depend on a global technology ecosystem, and attempting to own or control every part of the stack would mean giving up access to capabilities that are too costly, complex, or valuable to replicate.”

“A more useful approach is to treat sovereignty as a spectrum,” Murphy added. “Different workloads carry different risks, and the safeguards should reflect that.”

A more pragmatic approach

These concerns are driving a rethink of how organizations can improve sovereignty capabilities, according to Capgemini, with some targeting what could be described as a sovereignty-lite approach.

Rather than targeting complete technological independence, organizations are now taking a pragmatic approach that centers around “retaining control over key digital capabilities” and reducing dependence on a single provider.

Capgemini advised IT leaders to take into account a range of variables when pursuing this approach, including data localization considerations, access controls, and potential “technology constraints”.

Elsewhere, the consultancy recommended a tactic of “selective control” of critical technologies alongside strategic partnerships rather than fully sovereign ownership.

Matt Harris, SVP & UKIMEA managing director at HPE, echoed these recommendations, noting that organizations can still bolster resilience without embracing a fully sovereign stance.

“A more practical goal is to achieve meaningful control over the most strategically important layers, including sensitive data, AI deployment environments, security, networks, and governance,” he said.

“IT leaders should therefore begin by identifying their most sensitive data and critical workloads, assessing where external dependencies create operational or regulatory risk, and ensuring that portability, auditability and viable exit options are built into technology decisions,” Harris added.

A bridge too far?

Capgemini’s study isn’t the first to question the viability of complete digital sovereignty. As ITPro reported in July, analysis from Forrester warned true tech sovereignty could be a bridge too far for European enterprises.

The consultancy’s Global Sovereignty Forecast predicted that the shift toward tech sovereignty will move “slowly over the next five years”, warning that attempts to divest from US tech providers will fall flat.

Speaking to ITPro at the time, Dario Maisto, principal analyst at Forrester, said attempts to move away from popular vendors would require a monumental effort – and one many European enterprises simply cannot afford.

Commenting on the Capgemini report, Proton COO Raphael Auphan told ITPro that European organizations should consider the longer term costs of not pursuing sovereignty goals.

Auphan pointed to recent research from Proton that found nearly three-quarters (74%) of European firms fear a US-imposed ‘kill switch’ could cut them off from vital tools and services.

“Sovereignty doesn't threaten competitiveness, dependency does,” Auphan told ITPro. “Every Euro spent on US tech subsidises foreign competitors and hands leverage to another jurisdiction.”

“Europe won't outspend the Americans or outwork the Chinese, but it can lead on its values. In an era where AI companies vacuum up personal data and trust in US tech leadership is eroding, "built in Europe" is now a genuine differentiator.”

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