Insource vs Outsourced DC Operations

Is an automatic car better than a manual one? It’s a classic debate, and the answer depends on the driver and their preferences. What kind of journeys do they take? What’s their budget? Do they want to feel more in control?

Similarly, when it comes to managing engineering teams in data centres, the question of whether to insource or outsource sparks ongoing discussion. And just like with cars, there’s no universally right answer. It all comes down to what best fits your organisation’s needs, resources, and goals.

What Do We Mean by Outsourced Teams?

In this context, outsourcing means hiring a specialist third-party contractor to manage your data centre’s engineering services. This includes providing skilled engineers, overseeing operations, maintaining infrastructure, ensuring compliance with safety standards, and delivering continuous performance data and reporting on day-to-day operations.

An outsourced provider typically brings their own support infrastructure, such as payroll, administration, HR, and technical backup, allowing the client to focus on their core business.

If you don’t outsource, the services remain in-house, referred to as insourcing in this article.

Why Might You Choose to Outsource?

• You are a data centre operator focused on IT services, not engineering.
• You are expanding into a new region without the internal infrastructure to support operations.
• You lack the internal HR and administrative capacity to manage a large engineering team.
• You want to avoid the complexities of recruitment, employee relations, and compliance with local legislation.
• You value access to additional expertise, such as high-voltage support or project delivery.
• You already have a strong relationship with a trusted third-party provider.
• You want to benefit from a mature QSHE (Quality, Safety, Health, and Environment) culture.
• You need a scalable solution that can grow across regions or countries in a timely manner.
• You are looking for refined systems, innovation, and added value from a specialist provider.

Why Might You Choose to Insource?

• Potential cost savings over the long term (with no hidden or margin costs).
• Improved staff retention and lower attrition, outsourced staff may be more likely to move on.
• Easier to maintain and embed your company culture.
• No need to manage a third-party relationship.
• Full control over staff management and personnel decisions.
• Flexibility to adapt without rigid contractual commitments.
• Stronger employee loyalty through internal development and training.
• More direct control over operational decisions.
• Reduced risk around confidentiality and data security.
• Concerns about the quality or consistency of outsourced service delivery.

Making the Right Choice

There’s no one-size-fits-all answer. The best decision depends on your current situation, strategic goals, and existing relationships.

• If you already have a high-performing in-house team with strong audit results, why change?
• If you’re launching a new site and need a proven, ready-to-deploy model, outsourcing may be ideal.
• If you have the operational capacity to manage all aspects of the data centre and prefer full control, insourcing may be ideal.
• If your operations team is lean and you’re expanding rapidly, outsourcing may be ideal.
• If cost is your only concern and everything else is working well, it may be time to reassess priorities.

Ultimately, this is a conversation worth having around the table, with input from operations, HR, finance, and leadership. The right model is the one that aligns with your business objectives and delivers the best outcomes for your clients.