UK firms exposed to foreign supply chains, Capgemini finds

Capgemini has published research showing that 77% of UK organisations have significant exposure to foreign or externally controlled supply chains. It also found that only 36% of UK organisations that have recently faced operational disruption have contingency plans in place.

The findings point to a gap between boardroom focus on digital sovereignty and practical preparedness across UK businesses. While 91% of UK organisations discuss the issue at board level, far fewer have mapped their wider technology dependencies or planned for disruption.

Based on a survey of 1,300 business and technology executives globally, the research examined how companies view digital sovereignty as geopolitical tension, supplier concentration and technology dependence reshape risk management. In the UK, 56% of organisations said they see digital sovereignty mainly as a way to reduce risk and build resilience.

That contrasts with the US, where 52% of organisations primarily view the issue as a compliance matter. Across continental Europe, 52% also see it chiefly through the lens of resilience and risk mitigation.

Capgemini's global findings suggest many companies are moving away from the idea of full technological independence. Instead, businesses are focusing on protecting critical operations, maintaining control of key digital functions and avoiding over-reliance on a single supplier.

Globally, 59% of organisations said full digital sovereignty is not a realistic goal. Two-thirds instead defined it as resilient interdependence, combining selective control over critical technologies with strategic external partnerships.

Board focus

In the UK, digital sovereignty has become a prominent board issue. Some 41% of organisations described it as the highest board-level priority, while 91% said it is discussed at board level.

Yet the research suggests that strategic concern has not translated into full visibility of supplier and technology risks. Only 11% of UK organisations said they had fully mapped their broader technology ecosystem.

This matters because many companies rely on complex chains of cloud providers, software vendors, data services and hardware suppliers. Without a clearer picture of those links, businesses can struggle to assess their exposure to geopolitical shocks, supplier failure or switching delays.

Across the wider international sample, 86% of organisations reported significant exposure to foreign or externally controlled supply chains. Only 14% said they had end-to-end visibility into dependencies across their broader technology ecosystem.

Preparedness gap

The report also highlights uneven contingency planning after disruption. In the UK, just over a third of organisations that recently experienced operational disruption said they had contingency plans in place.

That compares with nearly two-thirds in the US, while Europe and Asia-Pacific were both only slightly above one-third. The findings suggest that direct experience of disruption has not consistently led to stronger resilience measures.

Vendor concentration remains another obstacle. More than a third of organisations globally said moving away from a critical technology provider would take more than 12 months, while one in 10 said they had no viable alternative supplier.

Cost is also a factor. Just under half of organisations surveyed said they were willing to pay a digital sovereignty premium, estimated at 23% on average, underscoring the trade-off many companies see between resilience and competitiveness.

Operational resilience amid geopolitical volatility is now the main driver behind digital sovereignty initiatives, cited by four in five respondents. Artificial intelligence was identified as the main area of the technology stack organisations prioritise in this work, with three-quarters naming it as a key focus area.

Some sectors place greater emphasis on the issue than others, particularly industries that manage critical infrastructure, information or operations. The study highlights aerospace and defence and transport as examples where concerns over control and resilience are more pronounced.

Karine Brunet outlined Capgemini's view of the issue in the report. "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, in order to regain the control and flexibility to manage risks," said Brunet, Chief Operations and Delivery Officer, Capgemini.

She added: "This will enable them to build the best, pragmatic roadmap to meet their strategic objectives - taking into account data localization, access control, operations, regulatory and technology constraints. The real challenge will be to build resilience without sacrificing competitiveness, to drive innovation and long-term growth."