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The Internal‑Vendor Trap: When Treating IT Like a Supplier Breaks Value

The Internal‑Vendor Trap: When Treating IT Like a Supplier Breaks Value

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Many organisations fall into a familiar pattern: business treats IT like an external supplier, and IT responds with contracts, SLAs and handoffs that minimise risk but also diffuse responsibility. The consequence is predictable—split incentives, brittle integrations, slower decision‑making and features that meet a contract but not the outcome. In this episode Mirko Peters walks through the mechanics of the internal‑vendor mindset, contrasting the business expectations it aims to satisfy with the engineering realities it creates. Through a generalized consulting example he shows where ownership evaporates, how governance can quietly incentivize the wrong trade‑offs, and which small governance, funding and language changes restore end‑to‑end accountability. Practical, no‑nonsense, and immediately actionable for both leaders who sign the checks and technologists who build the systems.

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