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This article explores the nature of inter-functional integration in the new service development process through a detailed study of two new internal ICT services developed at one of Europe's largest service providers: Consignia, the UK postal service. The study develops a conceptual framework, incorporating dimensions of process, context and outcomes, to inform the analysis. The empirical findings reveal that the level and timing of appropriate functional stakeholders, influence of relationships with external stakeholders, formalisation and ownership of authority, shared understanding of goals and the influence of shifting organisational contexts act as critical factors underlying the nature of inter-functional activities and outcomes. Managerial implications and future research directions are drawn.