Fact Checked

What is Data Center Outsourcing?

Tess C. Taylor
Tess C. Taylor

With so many businesses relying on secure computer networks and reliable servers to handle the influx of information that flows in and out daily, many are relying on data center outsourcing. This service allows companies to control networks in a secure environment while cutting costs. This method is useful for large organizations that have limited staff or storage capabilities.

In order to define data center outsourcing, it is important to understand what a data center is. A data center is a controlled environment in a computer room or department where computer servers are stored, maintained and networked with other computers in an organized fashion. Small companies often choose to house servers on-site for security purposes or for easy access when updates or maintenance are needed.

Woman doing a handstand with a computer
Woman doing a handstand with a computer

As a company grows, it may become more difficult and expensive to manage an internal computer center; therefore, the next logical choice is to utilize data center outsourcing services. This type of service can be managed by a reputable data center firm that has the capabilities of storing large amounts of secure data. In addition, a data center firm should be able to remotely network and support the operation of computers systems around the clock.

A common practice in data center outsourcing is that of co-location. This means that part of the server network is kept on-site and another part is maintained at a separate physical location. This type of arrangement can be advantageous when a company is going through a transitional period. This is also a good policy when upgrades cannot be managed on a continual basis due to costs and lack of manpower.

Data center outsourcing is also an option used by large international firms that prefer to have one central location for company servers. Remote users link to the server through a secure network and often have access to live telephone support in all time zones when taking advantage of this method. This service also allows for more frequent updates to applications and faster operating speeds which can greatly enhance a company’s ability to conduct business in a fast-paced world.

Using data center outsourcing is advantageous for many reasons. These reasons include keeping costs low, providing more space for operations instead of computer storage and having the support of live IT professionals when there is a problem. Having an off-site computer data center also provides peace of mind that if a natural disaster or robbery occurs; important company information will not be lost. For many organizations, data center outsourcing is the only option that makes sense.

You might also Like

Discussion Comments


I only needed one reason to outsource my data center and that was the potential of a power or technical failure. I have seen companies which had to completely halt their business because of such breakdowns. If you don't have the necessary backup of information, it's over with.

When you outsource, the company who is taking care of your data center has so many different ways to backup information if something happens. They also have electrical protection like numerous backup generators, even systems that protect from power surges, like say when, lightning strikes. It may seem like it won't happen to you but the possibility is there and taking the risk is not worth it because you may end up losing your business as a result. Just outsource it and be at peace.


Actually, there is a recent market report that's out and it says that data center outsourcing is going to grow because it is becoming increasingly cheaper. So I would actually expect all size companies to outsource their data centers in the near future.

I think we also tend to forget that a data center doesn't just need equipment, it also needs people to maintain it. When you think of it that way, it's easy to see how costly that will be in the long term. That is why outsourcing is better. It's kind of like renting. Are you going to pay less when you rent a car or buy one?

And I don't think that paying for a data center can ever be thought as an investment because technologies and security requirements are changing so fast that you might never be able to utilize the equipment enough for it to be an investment. So outsourcing is the way to go.


I think that data center outsourcing is best for medium sized companies. If I had a small company, I don't think I would outsource because I would have several servers for my data, so paying for outsourcing is probably not very efficient. It would be better to maintain a room or area with their data server or servers inside the company.

I don't think that large companies would prefer outsourcing either because there are also great locations with low tax rates, good security and low power prices that might work better for a large data center. Especially companies that work in manufacturing or production rather than services might want a data center that's close to labor.

A customer service company on the other hand, would probably benefit from outsourcing no matter how small or big. And I think most customer services of companies are already outsourced to different countries due to cheap labor. Maintaining a data center in one place physically would not work at all for those.

Post your comments
Forgot password?
    • Woman doing a handstand with a computer
      Woman doing a handstand with a computer