Iceland is a modern, technology-driven society with high standards of living. Information Technology is the fastest growing sector of the Icelandic economy. IT exports from Iceland have grown over 33-fold since 1992. This phenomenal growth is primarily due to the high standard of education, increasing access to capital markets, the country's international outlook as well as a proven talent for innovation. Iceland's IT sector spans all areas of the digital economy, and is well equipped to hod its own as an international player.

The country’s success domestically is so great that in the last decade it has spawned an impressive array of export-driven IT companies. Data management systems, workflow systems, communications solutions, wireless data systems, palmtop systems, Internet solutions, e-commerce content and solutions, gaming, healthcare solutions and of course fisheries technology systems are all exported to overseas markets. However, there are some Iceland does have some weaknesses in IT that may be difficult to overcome given its geography, demographics and dependence on the fishing industry.
 

Strengths

• Software is the fastest growing sector in Iceland’s economy, and many strong regional players have emerged.

• Iceland has a highly educated society and Universities and technical schools are well positioned to continue producing a technologically skilled workforce.

• The workforce in Iceland is multilingual. Most people are versed in Icelandic, English, and a third foreign language. This has proven to be a valuable trait in software development and call centers.

• The government is taking strides to privatize the already advanced telecommunications infrastructure.

• Low tariffs on telecommunications and technology products

• Strong growth and investments in research and development.

• Icelanders have a strong willingness to adopt new technologies. Mobile and Internet usage are among the highest in the world.

Weaknesses

• The geography and uneven population disbursement may it difficult to efficiently connect residents on the outskirts of the cities.

• Iceland’s small workforce is not positioned to make it a leader in hardware manufacturing. There is little domestic presence and the country relies heavily on exports.

• Iceland is currently not a member of European Union, and has no plans to in the near future because of the EU’s restrictions on the fishing industry. Although Iceland coordinates efforts closely with EU, it may still encounter difficulties, especially in e-commerce.