Digital Sovereignty to impact IT investment decisions Asia/Pacific governments

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An IDC report, The Impact of Digital Sovereignty in Asia/Pacific Governments, revealed how Asia/Pacific (AP) governments motivations to create digital sovereignty will shape technology investment priorities, regulatory frameworks, partnerships and skills in 2024.

IDC defines digital sovereignty, from a government perspective, as ‘the capacity for digital self-determination by a nation across six attributes of a digital sovereign solution, data, technical, operational, assurance, supply chain, and geopolitical aspects’.

When IDC asked how they viewed digital sovereignty in response to the economic and geopolitical events of the last year, 79% of government agencies interviewed said that they would be changing or reviewing their technology strategy and operations.

While data sovereignty is the first step for many agencies, new areas of investment are already emerging to become self-sustainable economies, such as the adoption of sovereign cloud solutions. At the start of 2023, 17% of AP government agencies said that they were already using sovereign cloud solutions and a further 30% said they have plans to do so by 2025.

“In the race toward digital sovereignty, Asia/Pacific governments risk not balancing national interests and the need for open digital borders to build a thriving digital economy,” says Louise Francis, Public Sector Research Lead, IDC Asia/Pacific. She adds, “Digital sovereignty is about more than data sovereignty. It has many layers that need to be addressed to achieve the right framework specific to the context of the country and its digital aspirations.”

“In the Asia-Pacific region, digital sovereignty requires a delicate balance between technology adaptation, skill development, and reconciling cross border data sharing with national security for innovation and trade, often involving compromises,” says Ravikant Sharma, Senior Manager, Government Insights, IDC Asia/Pacific.