Iceland is a small, but very technologically knowledgeable country. Many Icelandic software companies aim for international market, even though software development is mostly small scale. Previous failures give rise to questions about how scalable Icelandic software companies are and what software processes they follow. Free and open source software (FOSS) projects are, in contrast, driven by a global community and almost always aimed at international market. The FOSS community has developed techniques and methods which have lead to highly successful projects, which are currently maintained by multiple interested developers spread around the world. This article compares FOSS development methods to techniques and processes used by Icelandic software companies, in hope of identifying possible improvements to Icelandic software development.