This article explores internal service relationships within the service del
ivery process of a large telecommunications company The empirical research
generates an expression of the psychological contracts held between interna
l customers and suppliers based upon the content analysis of qualitative in
terviews. Seven hundred and twenty three contractual expectations are reduc
ed into 17 categories and this analytical framework is applied to measure t
he strength of the psychological contract between three interdependent serv
ice groups. The research explores how, established psychological contracts
encouraged the provision of flexible internal services and how psychologica
l contract breach precipitated service delivery problems with clear implica
tions for managers and service organisations.