We live in a digitized society in which clients not only demand that businesses should be digital but also that their digital offerings should be of value to the recipient. It has therefore become beneficial for businesses to include their customers in the development of their services. An approach that includes the customer in this work is Service Design. In this paper we study how Service Design is used in a Swedish government agency and what challenges and opportunities this brings to this kind of business. To gain insight into this, we have conducted interviews with people working in a government agency. We have also interviewed a person in the private sector who works with, and has experience of, introducing Service Design to public sector agencies. In our study, we discuss the fact that the government agency is behind in its digitalization work, which is something that can be derived to the lack of competitiveness within government agencies. We believe that this in turn has contributed to the fact that the services offered by government agencies have not been originated from their customers. In our study, we analyse how Service Design can help improve the services for their customers. We also show what requirements this imposes on a business in terms of organizational structure, change management and culture. With the results of our study, businesses can gain insight and understanding of what aspects should be considered when adopting and using Service Design.