Udviklings- og Forenklingsstyrelsen (UFST) - Comprehensive Analysis Report

Summary

Udviklings- og Forenklingsstyrelsen (UFST) is a Danish government agency under the Ministry of Taxation, playing a pivotal role in the digital backbone of Denmark's public sector. Its primary mission is to maintain existing IT systems and develop modern, future-ready IT solutions for the Danish tax administration. UFST ensures the stability and security of critical IT infrastructure that underpins the public sector's financing, thereby contributing significantly to Denmark's global leadership in digital government. The agency operates under the motto: "We develop in collaboration a future-ready and secure digital tax administration."

1. Strategic Focus & Objectives

Core Objectives

UFST's main business objectives revolve around ensuring robust and continuous IT support for the Danish Tax Administration. Key goals include:

Securing Stable and Safe IT Operations: Maintaining high operational stability and security for all IT systems under its purview.

Continuous Maintenance: Ensuring ongoing upkeep and modernization of the Tax Administration's existing IT systems.

Developing Essential IT Solutions: Partnering with other specialized agencies within the Tax Administration to create new, critical IT solutions.

Modernizing IT Infrastructure: Actively working to update and enhance the underlying technological framework.

Reducing Technical Debt: Systematically addressing and eliminating outdated or inefficient technological components.

Optimizing Market Solutions: Strategically utilizing and integrating commercial off-the-shelf and market-driven IT solutions where appropriate.

Ensuring Data- and Analysis-Driven Solutions: Developing systems that leverage data and analytics to create value for the Tax Administration, supporting correct and timely tax payments.

Maintaining Professionalism: Fostering a high level of professional competence through timely recruitment and strategic employee and leadership development.

Specialization Areas

UFST specializes in the full lifecycle management of public sector IT systems, from development and implementation to maintenance and operational security. Its unique value propositions include:

Domain Expertise: Deep understanding of the specific requirements and complexities of tax administration IT.

Public Sector Digitalization: A key driver in enhancing digital governance and public service delivery in Denmark.

Security and Stability: Commitment to developing and operating highly secure and reliable IT environments.

Strategic IT Partnership: Acting as a central IT development and operations partner for the entire Danish Tax Administration.

Target Markets

As a government agency, UFST's primary "target market" is the Danish public sector, specifically the Danish Tax Administration and its constituent agencies. Its solutions directly impact Danish citizens and businesses by facilitating efficient and transparent tax collection and administration. The agency's market positioning is that of an indispensable internal service provider and innovator, ensuring the digital foundation for a core government function.

2. Financial Overview

Funding History

Udviklings- og Forenklingsstyrelsen is a Danish government agency, and as such, its funding primarily comes from public allocations rather than traditional private investment or venture capital. Its estimated annual revenue range is between $25M and $50M. The agency operates within budget frameworks set by the Danish government, which are subject to adjustments. These adjustments can sometimes lead to personnel adaptations, such as reductions in staff, to align with decreasing budget allocations or government work programs.

3. Product Pipeline

Key Products/Services

UFST is actively engaged in several critical IT development projects that underpin the Danish Tax Administration's operations.

New Property Valuation System: Ongoing development with the aim to deliver all five planned releases to the Property Valuation Agency in 2024. This system is crucial for accurately assessing property values across Denmark.

New Customs Systems: Development is progressing as planned to ensure timely implementation, critical for Denmark's border control and international trade. Key releases in 2023 included:

Release 3.0: Focused on control for air shipments and ICS2 release 2.

Release 4.0: Encompassing DMS Export and DMS Consignment functionalities.

IT Development Pipeline Transparency: Efforts are underway to strengthen transparency in the IT development pipeline by expanding the overview of known activities to include IT development projects between 8-15 million DKK for 2025 and 2026. This aims to provide a clearer view of medium-scale IT initiatives.

4. Technology & Innovation

Technology Stack

UFST leverages a range of advanced technology tools and methodologies to ensure the stability, security, and efficiency of its IT systems.

Analytics: AppDynamics

Business Process Management: Blue Prism

Database Management: SAP HANA

IT Service Management: BMC Remedy

Load Balancing: Azure Front Door

Project Management: Adherence to methodologies like PRINCE2.

Proprietary Developments: Focus on creating data- and analysis-driven solutions tailored for the Danish Tax Administration.

Technical Capabilities: Strong emphasis on modern, scalable, and secure IT solutions, aligning with Denmark's broader investments in resilient infrastructure, artificial intelligence, cloud computing, and broadband to boost digital governance.

5. Leadership & Management

Executive Team

The executive management of Udviklings- og Forenklingsstyrelsen comprises a Director and five specialized departmental directors.

Thomas Lund Kristensen, Director

Professional Background: A cand.scient.pol graduate with prior experience as a departmental director at the Danish Tax Agency (Skattestyrelsen), director of the Technical and Environmental Administration in Copenhagen Municipality, and deputy director at the National Board of Industrial Injuries (Arbejdsskadestyrelsen).

Key Contributions: Leads the strategic direction and operational execution for IT support within the Ministry of Taxation, focusing on critical IT systems for annual statements, new property valuations, and ensuring a robust and continuously improved foundation for the Tax Administration.

Anne Kirstine Bechsgaard Damsager, Departmental Director, Control (Styring)

Professional Background: Holds a Cand.scient.soc. degree from the University of Copenhagen and has extensive public sector experience, including as director for the Center for HR and Education in the Capital Region of Denmark.

Key Contributions: Responsible for the strategic oversight and operational management of the agency's "Control" domain, ensuring adherence to governance and performance metrics.

Anders Carlsen, Departmental Director, Collection and Debt (Opkrævning og Gæld)

Professional Background: A Cand.scient.pol. graduate from Aarhus University with significant experience in public sector digitalization, particularly focusing on IT development and data in various state management positions.

Key Contributions: Oversees the crucial "Collection and Debt" domain, driving IT solutions that support effective and efficient tax collection and debt management.

Mette Ring Rossing, Departmental Director, Valuation, and VAT & Companies (Vurdering, samt Moms og Selskab) (acting)

Professional Background: A Cand.scient.pol. graduate from the University of Copenhagen with a master's degree in public management from CBS. She possesses extensive experience in IT development and public administration from various leadership roles in the state.

Key Contributions: Responsible for the "Valuation" domain and serves as acting departmental director for "VAT & Companies," managing IT systems related to property valuation, value-added tax, and corporate taxation.

Bo Hjorth Jensen, Departmental Director, Persons and Housing (Person og Bolig)

Professional Background: A civil engineer graduate from the Technical University of Denmark, holding a HD in Organization and Management from Copenhagen Business School.

Key Contributions: Manages the "Persons and Housing" domain, focusing on IT solutions related to personal taxation and housing.

Recent Leadership Changes

Thomas Lund Kristensen was appointed as the new Director of Udviklings- og Forenklingsstyrelsen, effective December 1, 2025, succeeding Niels Gotfredsen. Prior to this appointment, Mr. Kristensen served as a departmental director for economy in the Danish Tax Agency. Additionally, Bo Hjorth Jensen was appointed as a new departmental director, further strengthening the executive team. These changes underline a continued focus on bringing experienced public sector and IT development leaders into key roles to drive the agency's strategic mandate.

6. Talent and Growth Indicators

Hiring Trends and Workforce

Udviklings- og Forenklingsstyrelsen employs approximately 1,800 individuals across its offices located in Copenhagen, Middelfart, Aalborg, and Kongens Lyngby. The agency actively recruits skilled professionals and new graduates, offering various career opportunities including a "Kickstart" program for recent graduates and internships.

Current Hiring Focus: Recent hiring patterns indicate a strategic focus on strengthening leadership, cybersecurity expertise, and core IT development capabilities. Open positions have included roles such as "Underdirektør til området Person" (Underdirector for the Personal Area) and a "Motiverende personaleleder med stor indsigt i cybersikkerhed og beredskab" (Motivating HR leader with great insight into cybersecurity and preparedness).

Employee Culture: UFST emphasizes creating a positive work environment, focusing on employee well-being through activities that promote leadership development, a constructive feedback culture, and overall job satisfaction.

Growth Trajectory: While actively recruiting for specialized roles, the agency has also announced planned personnel adjustments, anticipating a reduction of approximately 170-180 employees. This is primarily attributed to falling budget frameworks and contributions to the government's work program, indicating a strategic adaptation to public expenditure guidelines rather than a decline in core mission.

7. Social Media Presence and Engagement

Digital Footprint

Udviklings- og Forenklingsstyrelsen maintains a professional presence on LinkedIn, which serves as a platform for corporate communication, professional networking, and talent acquisition.

Brand Messaging: The agency uses its digital presence to communicate its role in supporting Denmark's digital tax administration, highlight technological advancements, and share updates on key projects.

Community Engagement: LinkedIn is likely utilized to engage with public sector professionals, IT specialists, and potential recruits, showcasing the agency as a forward-thinking and impactful workplace.

Thought Leadership: While not extensively detailed, the focus on innovation and data-driven solutions suggests an effort to position UFST as a thought leader in public sector IT and digital governance within Denmark.

Recruitment Initiatives: The official website features sections like "Meet our employees," profiling individuals in diverse roles such as Data Scientist, Product Owner, Solution Architect, UX-designer, Machine Learning Engineer, and IT-Project Manager. This strategy aims to humanize the agency, highlight career paths, and attract talent by showcasing the breadth of technical expertise within UFST.

8. Recognition and Awards

Industry Recognition

Denmark consistently receives high international recognition for its advanced digital government efforts, frequently topping global rankings such as the United Nations E-Government Survey (in 2018, 2020, 2022, and 2024). These accolades assess the scope and quality of online services, telecommunication infrastructure, and human capacity within the public sector. While these awards are country-level achievements, Udviklings- og Forenklingsstyrelsen plays a fundamental and integral role in achieving this status. By developing and maintaining the critical IT systems for the Danish tax administration, UFST directly contributes to the robust digital infrastructure and high-quality digital services that underpin Denmark's recognized leadership in digital governance. Its contributions are essential to the nation's ability to offer efficient and transparent public services.

9. Competitive Analysis

Major Competitors

As a governmental agency with a specific mandate to develop and operate IT systems for the Danish Tax Administration, Udviklings- og Forenklingsstyrelsen does not face direct commercial competitors in the traditional sense. Its unique position within the public sector means that its services are not subject to commercial procurement or competition.

However, UFST operates within a broader Danish ICT market characterized by high demand for advanced software and IT products. In this larger ecosystem, market players such as IBM Corporation, Oracle, Microsoft Corporation, Cisco Systems, and Google LLC are significant. While these companies do not compete directly with UFST's core mandate, they are key players in the Danish public sector's IT spending, vying for contracts and partnerships related to broader IT infrastructure, cybersecurity, and specialized IT services that the public sector may outsource or acquire.

UFST's "competition" is therefore more implicit, focusing on its ability to effectively deliver on its mandate compared to the capabilities and innovation offered by the general market. This includes:

In-house vs. Outsourced Solutions: The agency continually evaluates the balance between in-house development and potentially leveraging external sourcing for specialized IT services or components.

Technological Modernization: The imperative to reduce technical debt and embrace data-driven, secure, and modern IT solutions places UFST in an environment where various IT security, cloud computing, and modernization solution providers are active, requiring UFST to remain at the forefront of technological adoption.

10. Market Analysis

Market Overview

Denmark boasts one of the most digitalized societies globally, consistently ranking highly in international surveys on digital government. The Danish ICT sector is a substantial industry, with an approximate value of USD 35 billion, primarily driven by software development and services.

Public Sector as a Key Consumer: The public sector is a significant consumer of IT services in Denmark, accounting for 25-30% of the total IT spending. This underscores the importance of agencies like UFST in driving demand and shaping the IT landscape.

Key IT Investment Priorities: Danish IT investments prioritize cybersecurity, business IT alignment, unified communication, IT architecture, business intelligence, and outsourcing. These trends directly influence UFST's strategic focus areas.

Government Digital Strategy: The Danish government continuously updates its digital strategy. The latest Joint Government Digital Strategy for 2026-2029 aims for coherent and user-friendly digital solutions, effective data use, and responsible application of new technologies.

AI Adoption: Artificial intelligence (AI) research and implementation are strategic priorities, supported by a national AI strategy launched in 2019 and ongoing investments in digital and AI research.

Market Strengths: High public sector trust and extensive internet penetration among the population are critical enablers for the success of digital public services in Denmark, creating a fertile ground for UFST's digital initiatives.

11. Strategic Partnerships

Udviklings- og Forenklingsstyrelsen actively engages in strategic collaborations to enhance the efficiency and security of its IT operations within the public sector.

Statens It Partnership: A significant collaboration involves a partnership with Statens It (the State IT agency), which has led to the transfer of the basic IT operations of the Ministry of Taxation to Statens It. This strategic move is part of a reinforced focus on ensuring secure, efficient, and stable IT operations for the entire tax administration.

Inter-Agency Collaboration: UFST collaborates with other agencies within the Danish Tax Administration to streamline business processes and jointly develop complex IT solutions. These partnerships are crucial for shared investments in areas with interdependencies across various authorities and sectors, supporting nationwide digital strategies and ensuring a unified approach to public sector digitalization.

12. Operational Insights

Udviklings- og Forenklingsstyrelsen occupies a unique and critical market position as the dedicated IT development and operations agency for the Danish Tax Administration.

Current Market Position: It is an indispensable internal service provider within the Danish government, responsible for the technological foundation of