From vision to reality
Department of Service and Innovation Annual Report 2025
Finances and key figures
The Department's 2025 financial results stem from the appropriations, revenues, and expenditures of its constituent components. Total operating expenditure reached 4,607 million ISK against a revised budget of 4,594 million ISK, putting overall spending 12.7 million ISK (about 0.28%) over budget.
Annual investment totaled 1,524 million ISK against a planned 1,730 million ISK, leaving spending 206 million ISK (11.9%) below the projected amount.
Operation
As noted above, the department's total operating costs reached 4,607 million ISK. IT Services accounted for 2,651 million ISK of that amount, making it the single largest cost driver at about 58% of overall operating costs.
IT Services ran 204 million ISK over its annual budget, driven primarily by higher personnel and operating expenses. These overruns partly reflect the rapid scaling and mounting pressure on IT infrastructure operations, which required relying more heavily on contractors to maintain service continuity and information security.
Operating costs for the department's facilities services — covering Höfðatorg and City Hall — totaled 505 million ISK, representing roughly 11% of overall operating expenditure.
Operating costs for services and transformation also came to 505 million ISK, accounting for about 11% of the Department's total operating budget.
Operations by units
| Unit | Actual 2025 | Revised forecast 2025 |
Variance between actual and revised forecast in % |
Actual 2024 | Change between years, in % |
|---|---|---|---|---|---|
| Reykjavík Municipal Archives | 203 | 208 | -2.4% | 199 | 2.3% |
| Data service | 51 | 110 | -53.1% | 70 | -27.2% |
| Information and Records Management | 170 | 204 | -16.7% | 160 | 6.5% |
| Facility services | 505 | 510 | -1.1% | 548 | -7.9% |
| Digital Reykjavík | 282 | 322 | -12.5% | 343 | -18.0% |
| ÞON central office | 239 | 260 | -8.1% | 192 | 24.5% |
| IT services | 2,651 | 2,447 | 8.3% | 2,690 | -1.4% |
| Service and transformation | 505 | 533 | -5.1% | 409 | 23.6% |
| Total | 4,607 | 4,594 | 0.28% | 4,611 | -0.1% |
Investments
The Department's total investment in 2025 reached 1,524 million króna, against a 1,730 million króna investment plan.
The largest share of investment went to end-user equipment and IT infrastructure, totaling 579 million ISK or roughly 38% of the year's overall investment.
Software and new information systems accounted for 323 million ISK, making up 21% of the annual investment total.
Product development and process digitalization required 252 million ISK, representing about 17% of the year's total investment.
