Find top 12 companies in Iceland for your Software Development services needs!

Leading agencies include Locatify, Dacoda, Annata, Stefna and Wise lausnir ehf.. A total of 12 Software Development providers in Iceland are ready to help. They serve clients such as IT, Retail, Finance, Business, Healthcare, Government, E-commerce, Hospitality, Food Service and Small businesses. Local internet speeds average 295.55 Mbps, supporting fast development and collaboration. Average local salaries are around $90,055, reflecting market rates.

Average starting budget
$3,000
while min. project budget is $500
based on 12 profiles
Average hourly rate
$125
and starting from $50 / hr
based on 12 profiles
Popular skills
UWBIOSGPSMapsAndroidSQL ServerLS CentralBLE BeaconsDynamics 365.NET Framework
Key technical proficiencies
based on found companies
Also specialize in
Software Development (12)Web & Software Development (5)Web Design (UI/UX) (2)IT Services & Consulting (2)Cloud Consulting (1)
Complementary specialties
validated by client feedback
Software Development covers creating custom applications and tools that solve specific challenges for your business. This can range from simple web apps to complex enterprise systems. Sub-services include requirements gathering, architecture design, coding in various programming languages, integration with other systems, quality assurance testing, deployment automation, and ongoing maintenance to keep your software up to date and secure.
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Trusted by
Google
Microsoft
Airbnb
Spotify
Netflix

Found 12 matching agencies

L
Kópavogur, Iceland

LS Retail provides software solutions that cater to the needs of various industries. Their unified commerce platform offers a range of benefits, including enhanced staff performance, improved customer service, and increased sales and loyalty. By leveraging their POS and ERP software, businesses can gain an in-depth view of their operations, including stores, inventory, basket size, and financial analysis. LS Retail's solutions are designed to meet the unique requirements of each industry, making them an ideal choice for companies looking to streamline their operations and improve overall performance.

team of 26 - 50 people

40+ years of industry experience

rate $150 - $200 / hr

contact for pricing

S
Akureyri, Iceland

Stefna is a leading provider of software development and web design services. With over 18 years of experience, they have honed their skills in creating innovative digital solutions that cater to the unique needs of their clients. Their team of experts excels in crafting user-friendly UI/UX designs and developing bespoke software applications that streamline business processes and enhance customer experiences. By leveraging their expertise, businesses can expect improved efficiency, increased productivity, and enhanced competitiveness in the market. Whether it's a web application, mobile app, or software solution, Stefna's commitment to quality and excellence ensures that every project meets the highest standards.

team of 2 - 10 people

20+ years of industry experience

contact for pricing

contact for pricing

A
Kópavogur, Iceland

Annata provides comprehensive solutions for automotive manufacturers, equipment suppliers, and dealerships. Their services include finance and operations management, customer engagement, field service management, and more. With a strong focus on industry-specific solutions, Annata helps clients improve efficiency, reduce costs, and enhance the overall customer experience. By leveraging advanced technologies and deep industry knowledge, Annata enables businesses to stay competitive and thrive in today's fast-paced market landscape.

team of 2 - 10 people

3 years of industry experience

contact for pricing

contact for pricing

E
Reykjavik, Iceland

Emco Software offers a range of innovative solutions for network administration, including software development and IT services consulting. Their MSI Package Builder v11 enables efficient package testing, automated installation and uninstallation testing, and prompt problem detection and reporting. The company provides products for IT teams, from startup to enterprise, automating software packaging, deployment, network auditing, computer power management, network protection, and other network management tasks. Emco Software's solutions also enable remote automatic deployment of silent MSI packages, audit installed software, and distribute software installations across a network. Additionally, their EMCO Ping Monitor allows for monitoring connections to local and remote hosts, providing connection statistics and notifications when connections are lost and restored.

team of 2 - 10 people

20+ years of industry experience

rate $100 - $150 / hr

min project budget $5k

L
Hafnarfjordur, Iceland

Locatify is a company that helps people connect with places and each other through location-based games, tours, and guides. We provide white-label and custom apps for organizations to engage their audience in various ways. Our technology enables immersive experiences with automatic content triggering, navigation, and asset tracking options. With plans starting from €0, anyone can become a content creator.

team of 2 - 10 people

15+ years of industry experience

contact for pricing

contact for pricing

D
Iceland

Dacoda is a leading provider of software development and web design services, dedicated to delivering cutting-edge solutions that drive business results. By leveraging their expertise in UI/UX, they help clients create seamless digital experiences that captivate audiences and surpass expectations. From concept to launch, Dacoda's team of skilled professionals provides comprehensive support, ensuring that every project meets the highest standards of quality and performance.

team of 2 - 10 people

20+ years of industry experience

contact for pricing

contact for pricing

W
Reykjavik, Iceland

Wise lausnir ehf. is a leading provider of software development and cloud consulting services. With years of experience, the company helps businesses navigate complex challenges and achieve success. Wise offers expert solutions in areas such as Dynamics 365, Business Central, and cloud-based services. These services enable businesses to streamline operations, improve efficiency, and gain a competitive edge. By leveraging Wise's expertise, companies can reduce costs, increase productivity, and drive growth.

team of 26 - 50 people

30+ years of industry experience

contact for pricing

contact for pricing

M
Rey arfjor ur, Iceland

Memento Payments provides exceptional digital wallet services, enabling businesses to offer their clients an engaging and secure experience. The company's digital wallet solutions extend, modify, and operate with ease, providing complete control over card management. A fully digital onboarding process ensures safe and secure first impressions for new clients. The management dashboard offers a ready back-office solution for teams to monitor and manage services efficiently. With its developer-friendly platform, Memento Payments makes it easy for developers to integrate the company's SDK. By subscribing to the Memento Newsroom, businesses can stay up-to-date on the latest news and trends in digital wallets.

team of 2 - 10 people

10+ years of industry experience

contact for pricing

contact for pricing

S
Reykjavik, Iceland

Samsyn provides comprehensive services in web and software development, as well as specialized expertise in geographic information systems (GIS). With a strong focus on innovative technology, the company offers a range of benefits to its clients, including improved data management, enhanced decision-making, and increased efficiency. By leveraging cutting-edge tools and frameworks, Samsyn helps organizations streamline their operations, drive business growth, and stay ahead of the competition. From custom software development to GIS analysis and mapping, Samsyn's team of experts delivers tailored solutions that meet the unique needs of each client. With a legacy spanning over 25 years, Samsyn has established itself as a trusted partner for organizations in various industries, including government, healthcare, and finance.

team of 2 - 10 people

30+ years of industry experience

contact for pricing

contact for pricing

M

Myrkur Games develops engaging game experiences that captivate players worldwide. Leveraging expertise in web and software development, they craft deeply compelling worlds and characters. By focusing on their own IPs, Myrkur aims to bring joy and wonder to gamers from diverse backgrounds. Their services benefit clients by providing tailored solutions for ambitious game projects. With a strong emphasis on community building, Myrkur Games fosters connections between players and the world of gaming.

team of 2 - 10 people

9 years of industry experience

contact for pricing

contact for pricing

T
Reykjavik, Iceland

TechState.io provides comprehensive digital services to empower businesses. With a focus on web and software development, mobile app development, and cybersecurity, the company delivers high-quality solutions that meet specific client needs. By leveraging international experts in design, marketing, software engineering, and cyber security, TechState.io creates, implements, advertises, and protects virtual assets. The company's commitment to flexibility, professionalism, and innovation ensures reliable partnerships for clients. From modernizing websites to providing ongoing support in online advertising activities, TechState.io demonstrates expertise in various digital areas.

team of 2 - 10 people

15+ years of industry experience

rate $50 - $75 / hr

min project budget $1k

d
Reykjavik, Iceland

This technology firm specializes in web and software development, e-commerce development, IT services, and consulting. By leveraging cutting-edge technologies like Android, iOS, and web development, they create robust and efficient solutions to meet the needs of various industries. Their expertise extends to developing custom applications, mobile apps, and digital platforms for clients. With a focus on scalability and reliability, devfox provides comprehensive services that help businesses grow and thrive. From data analysis to software implementation, their team offers tailored support to ensure seamless operations. By partnering with devfox, clients can tap into the latest technologies and stay ahead of the competition.

team of 2 - 10 people

6 years of industry experience

contact for pricing

contact for pricing

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Digital agency industry and ecosystem in Iceland

The digital agency industry in Iceland has experienced notable growth in recent years, driven by the country's strong emphasis on innovation, digital infrastructure, and tech-savvy population. Iceland boasts one of the highest internet penetration rates globally, with around 99% of its population actively online, providing a solid foundation for digital agencies to flourish.

Key statistics and trends

The Icelandic digital marketing and advertising sector has expanded steadily, reflecting broader European trends. According to Statistics Iceland, digital advertising spending accounted for over 60% of total advertising expenditure in 2022, marking a clear shift from traditional media to digital platforms. Additionally, the rise of mobile device usage—with approximately 95% of Icelanders owning smartphones—has pushed agencies to prioritize mobile-first strategies.

A notable trend in the Icelandic market is the growing demand for specialized digital services, such as UX/UI design, SEO, content marketing, and video production. This specialization has led to the emergence of boutique agencies focused on niche markets.

Challenges and opportunities

Despite steady growth, digital agencies in Iceland face several challenges, including a relatively small domestic market and intense competition for skilled professionals. The limited talent pool in specialized areas like data analytics, software development, and digital strategy is a significant constraint. Furthermore, economic fluctuations and currency volatility occasionally create budget uncertainties for both agencies and their clients.

Nevertheless, the Icelandic market presents considerable opportunities:

  • Government support: Strong governmental initiatives aimed at boosting innovation and digital entrepreneurship.
  • Global expansion: Opportunities to leverage Iceland's strategic location between Europe and North America to expand internationally.
  • Sustainability: Rising demand for digital solutions aligned with sustainability and eco-friendly practices.

Overall, Iceland's digital agency ecosystem continues to mature, driven by innovation, digital adoption, and a supportive business environment that fosters growth and international potential.


Software development services: What decision-makers need to know

Software development today is more than simply writing code—it's about creating scalable, maintainable, and user-friendly solutions that support business growth and innovation. Partnering with a reliable software development agency can streamline your processes, enhance productivity, and provide a competitive advantage in your industry.

Industry overview and relevance

The global software development industry continues to expand rapidly, driven by advancements in technology and increasing demand for digital transformation. Agencies now offer specialized expertise across web and mobile applications, cloud computing, artificial intelligence (AI), and cybersecurity, enabling organizations to stay agile and forward-thinking.

Common questions to ask before hiring an agency

  • Do they have experience with similar projects or industries?
  • What technologies and methodologies do they use?
  • How transparent are their reporting and communication processes?
  • Can they scale resources based on your project requirements?

Key benefits and potential pitfalls

Working with a professional software development agency brings several benefits, including access to expert developers, faster project timelines, and reduced risk. However, common pitfalls include unclear project requirements, unrealistic timeframes, and choosing an agency that lacks transparency or technical expertise.

Typical project timelines and technologies used

The timeline for software development services varies significantly depending on complexity and scope, typically ranging from 3-12 months. Popular technologies and tools agencies utilize include JavaScript frameworks (React, Angular, Vue.js), cloud platforms (AWS, Microsoft Azure, Google Cloud), programming languages (Python, Java, C#), and agile methodologies such as Scrum and Kanban.

Understanding these key factors ensures your collaboration with a software development provider aligns effectively with your strategic goals, delivering both immediate results and long-term value.

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