Renewal of Legacy Information Systems

The renewal of legacy information systems is the responsibility of institutions and their respective ministries. Digital Iceland provides guidance, standards, and support where appropriate, but the projects themselves remain the responsibility of the relevant institution and ministry.

The renewal of legacy information systems is not only about replacing outdated software. It is about improving operations, reducing risk, and ensuring that critical government systems continue to support services, data, and operations in a secure and sustainable way. The goal is for projects to be better prepared, based on shared standards, and to deliver lasting value for the government.

Legacy Systems and Systemically Important Core Systems

Many legacy information systems are no longer isolated tools within a single institution. They form an important part of government operations, manage data that others rely on, and support services that affect individuals, businesses, and other public entities. When such systems fall behind, this increases not only technical risk and the likelihood of poorer service, but also operational risk and cost.

The challenge is therefore not only outdated software, but also unclear ownership, limited documentation, unclear operational processes, poor data quality, and strong dependencies on legacy systems or individual vendors. The renewal of legacy systems must therefore be viewed as a digital transformation of critical infrastructure rather than as a limited software replacement project.

Modernisation of the Government’s Digital Infrastructure

The modernisation of the government’s digital infrastructure takes place through clear stages. The objective is to enable institutions and ministries to prepare projects properly, choose an appropriate approach, and ensure that new solutions are efficient, secure, and sustainable over the long term. Consideration must be given to data, ownership, operations, procurement, and development — not only technical implementation.

To support institutions and ministries, five stages have been defined, covering the process from initial assessment to operations. These stages provide a shared framework for how projects are analysed, prepared, designed, implemented, and operated. Applications for funding contributions, however, are linked only to two defined points within this process.

Funding – Ministry of Finance and Economic Affairs Contribution

Investment contributions from Ministry of Finance and Economic Affairs may be considered at two points in the renewal process for legacy information systems: firstly, when a project moves from initial assessment into technical analysis, and secondly, in certain cases, when the technical analysis has been completed and the project is ready for the next step. Funding is not intended for H4 or H5.

Read more about the application process.