In an increasingly connected global landscape, resistance to outsourcing data center services remains notably present in the Brazilian market. Surprisingly, data reveals that 701% of Brazilian companies still choose to store their data in-house. This article seeks to understand the reasons behind this conservative approach, exploring the reasons that lead Brazilian companies to maintain their data center infrastructures in-house.
Conservative business culture
One of the main reasons for resistance to data center outsourcing in Brazil is the conservative corporate culture. Many organizations have a long tradition of internal control, which generates distrust regarding the security and confidentiality of data managed by third parties.
Source: Business Culture Survey in Brazil – Institute of Business Studies (IEE), 2022
Data security concerns
Data security concerns are a significant factor. Many companies fear that outsourcing may expose their sensitive information to cybersecurity risks. This fear is often fueled by a lack of understanding of the rigorous security standards adopted by data center service providers.
Source: Cybersecurity Report in Brazil – Brazilian Association of Digital and Information Security Companies (ABESI), 2023
Lack of knowledge about the benefits of outsourcing
Another crucial point is the lack of knowledge about the real benefits of data center outsourcing. Many companies don't fully understand the advantages, such as reduced operating costs, greater efficiency and scalability , which can be achieved by opting for specialized external services.
Source: Business Technology Trends Survey – Brazilian Institute of Business Technology (IBTE), 2023
Previous infrastructure investments
Some companies are hesitant to outsource their data centers due to the significant investments they've already made in internal infrastructure. The "we've already invested, so let's keep it that way" mentality can prevent them from adopting more efficient and modern solutions.
Source: Technological Infrastructure Investment Survey – Brazilian Association of Information Technology (ABTI), 2022
Although the Brazilian market remains quite conservative regarding data center outsourcing, it is crucial that companies reconsider their strategies. With 701 TP3T organizations still storing data in-house, it is clear that there is an opportunity for a paradigm shift. By understanding and addressing the underlying concerns, companies can capitalize on the benefits of outsourcing, improving operational efficiency and ensuring data security.
Digital transformation is an inescapable reality, and data center outsourcing is a fundamental piece of this puzzle, enabling Brazilian companies to thrive in an increasingly globalized business environment.
