The IT Industry in Denmark: Country Profile & Overview

by Dan Irascu

The IT Industry in Denmark: Country Profile & Overview

According to the European Commission’s annual ranking, Denmark is one of the most digitized economies and societies among the 28 EU member states (2020). This is a testament to Denmark’s outstanding IT infrastructure and tech-savvy population.

85% of Danish citizens are online and actively engaged in the use of a variety of online services, making their digital skills highly advanced. In fact, all communications between citizens and public authorities take place digitally.

It is fair to say that Denmark has set some heavy footprints in the global software development arena. A number of the most used programming languages have been developed by Danish researchers, including C++, TurboPascal, and Visual Prolog. Denmark is also home to world-class software development talent - especially within the fields of security and cryptography, algorithms, AI/ML, wireless network solutions, eGovernment solutions, acoustics software, and robotics. 

Since Denmark is a small, highly integrated, and homogenous society, consumers often play an active role in developing new technology and are quick at adopting new technologies. Using Denmark as a test market gives international corporations the advantage of being able to quickly adjust and improve a product at low costs before releasing it on the world market.

Why working with Danish IT companies

There are more reasons why working with Danish IT companies is worthwhile - Abundant tech professionals, highly qualified workers, the ease of doing business, access to a rich and innovative market are just a few to mention. 

But let’s take a look closer: Denmark is not the country that faces a workforce shortage in the IT industry. More and more professionals are attracted to work in this industry. What attracts them to work - higher wages, public sector digitalization, and government facilities combined with 6 hours of work/day, and an attractive social system. 

The ease of doing business - according to the 2020 report, Denmark ranked 4th in the world. That’s lower bureaucracy, services digitalization, and a healthy business environment overall. 

Highly qualified workers come from tech universities that look more attractive to youngsters than other specialities. And at last - all these lead to an innovative market to which the lucky ones have access. 

What to pay attention to when working with Danish IT companies

With all the facilities and benefits Danish companies come with, there must be a price. Sure - it’s the money clients pay for the comfort of doing business. Business owners usually pay 15-20% more for digital projects on average, when working with Danish IT companies, compared to the EU average. And that’s probably the only thing that could retain from working with a Danish IT company.

How reliable are Danish companies

Reliability and reputation for Danish IT companies and software agencies are very important. But everything comes from the system’s conditions: The less the government pressure, the better the services and the business. A very simple deduction that reveals a part of the truth - Danish companies are reliable because of the policies. 

Another part of the story is about tradition. While building its own public sector as a digital sector where there is no need to interact physically with authorities, the Danish digital agencies took over the best practices from countries in the neighborhood. Germany and Sweden have two quite different business models, and the best of both can be found in Denmark.  Now, coming back to traditions, Denmark managed to build its own business culture that is distinctive and pleasant at the same time.

Dan Irascu

Head of Marketing

Researching, analyzing, and writing insightful stuff is what I do for a long time now at Mobiteam. At TechBehemoths, I put all my experience and knowledge work for IT companies and businesses and help them reach each other.