How to Successfully Outsource a Cloud Engineering Team

Businesses rely heavily on cloud solutions to scale operations, improve data security, and cut infrastructure costs these days. But building and managing a skilled in-house cloud engineering team can be costly and time-consuming, especially in competitive talent markets. That’s why many global companies are turning to outsourcing cloud engineering teams as a strategic move to access expertise, save costs, and stay agile.

Whether you’re a startup needing cloud migration or a multinational enterprise scaling cloud operations, outsourcing your cloud engineers can help you achieve more without overextending your payroll and HR resources. 

In this guide, we’ll explore the benefits, challenges, and strategies for successfully outsourcing cloud engineers, with real-world examples like Malaysia as an outsourcing hub.

What is Cloud Engineering Outsourcing?

Cloud engineering outsourcing is the practice of partnering with an external team of cloud specialists to design, manage, and optimize your cloud infrastructure, applications, and operations. Instead of relying solely on an in-house IT department, businesses tap into the expertise of global cloud engineers who are already certified and experienced in working with leading platforms like AWS, Microsoft Azure, and Google Cloud.

Also Read: How to Successfully Outsource a Back-End Development Team

An outsourced cloud engineering team typically takes care of:

• Cloud migration and architecture design: Moving applications and data from on-premise systems to the cloud and building secure, scalable cloud architectures.
  
• Ongoing infrastructure monitoring and optimization: Ensuring your systems run smoothly, with continuous performance tuning to avoid downtime.
  
• Security and compliance management: Applying international standards such as ISO/IEC 27001 or GDPR to safeguard sensitive data.
  
• DevOps, automation, and scalability solutions: Streamlining development workflows and enabling rapid scaling during business growth.

For example, a retail company expanding into e-commerce may outsource cloud engineers to migrate its legacy systems into a modern cloud-based architecture, ensuring real-time inventory tracking and automated customer service tools without investing in expensive in-house resources.

Unlike traditional IT outsourcing, which often focuses on managing on-premise servers and hardware, cloud outsourcing relies on cloud-native technologies. This shift enables companies to innovate faster, lower costs, and stay ahead in competitive markets.

Why Outsourcing Your Cloud Engineering is a Strategic Power Move

Outsourcing cloud development isn’t just about saving money; it’s about transforming the way your business operates. By leveraging specialized teams, companies unlock both agility and competitive advantage. Here’s how:

1. Access to Elite, Vetted Talent

With outsourcing, businesses can instantly connect with top-tier cloud engineers who are certified in AWS, Azure, or Google Cloud. These experts often have experience across industries from fintech to healthcare and bring tested solutions to common business challenges.

Example: A startup in Singapore needing a cloud security expert for regulatory compliance could outsource to Malaysia, where certified engineers are readily available at competitive costs.

2. Significant Cost Optimization

Hiring cloud engineers in high-demand markets like the US or UK can be prohibitively expensive due to salaries, benefits, and infrastructure. Outsourcing allows companies to reduce payroll and overhead costs, while still accessing highly qualified talent in regions with lower salary markets.

Example: A US-based SaaS company outsourcing its cloud DevOps team to Malaysia can save up to 40–50% on payroll compared to hiring locally, while maintaining service quality.

3. Unmatched Scalability and Flexibility

Cloud projects are rarely static. Some months you may need a full team of developers for a major migration, and at other times, you only need one or two engineers for ongoing optimization. Outsourcing gives you the flexibility to scale resources up or down without long-term hiring commitments.

Example: A fintech company launching a new mobile app can onboard three additional outsourced engineers during the launch phase, then scale back once demand stabilizes.

Also Read: How to Hire and Manage a High-Performing Back-End Developer Team in Malaysia

4. Accelerated Time-to-Market

Global outsourcing allows companies to adopt a “follow-the-sun” model, where work continues around the clock across different time zones. This drastically shortens development cycles, allowing businesses to release products faster than competitors.

Example: While an in-house team in Australia finishes its day, an outsourced team in Malaysia can pick up the work overnight effectively cutting project timelines in half.

Benefits of Outsourcing a Cloud Engineering Team

1. Cost Efficiency

Outsourcing helps businesses save significantly on salaries, training, and infrastructure. Instead of bearing the overhead of full-time employees and office setups, companies can access skilled cloud engineers at competitive rates.

Malaysia Example: Hiring a certified cloud engineer in Malaysia can cost 40–60% less than in the US or Europe. For instance, a US-based SaaS company can outsource to Malaysia to reduce payroll costs while avoiding the expense of setting up a new office or IT infrastructure.

2. Scalability

Cloud projects often require flexible team sizes. Outsourcing allows businesses to scale teams up or down depending on project timelines, avoiding the delays and commitments that come with local hiring.

Malaysia Example: A Singapore fintech company scaled its team by adding five outsourced cloud engineers from Malaysia for a product launch. After the rollout, the company reduced the team size without long-term obligations.

3. Access to Expertise

Outsourced teams provide specialized skills in DevOps, automation, cybersecurity, and compliance, areas that may be difficult or costly to maintain in-house. This ensures businesses always have access to the latest cloud technologies and best practices.

Malaysia Example: Malaysia’s growing pool of AWS- and Azure-certified engineers offers companies expertise in handling complex multi-cloud environments without needing to hire full-time specialists.

Also Read: Payroll and Compliance for Hiring Back-End Developers in Malaysia

4. Faster Deployment

Outsourcing shortens time-to-market as offshore teams can work in different time zones, enabling round-the-clock development cycles. This continuous workflow speeds up product releases and infrastructure upgrades.

Malaysia Example: A European eCommerce company outsourced to Malaysian cloud engineers to support 24/7 development, ensuring new features were deployed faster and ahead of competitors.

5. Focus on Core Business

By outsourcing cloud engineering tasks, businesses can free up internal resources to concentrate on innovation, customer service, and growth strategy rather than routine maintenance.

Malaysia Example: A Hong Kong-based startup outsourced infrastructure management to Malaysian engineers, allowing its internal team to focus entirely on R&D and scaling their product, rather than troubleshooting cloud servers.

Summary Table

Benefit	How It Helps Businesses	Example (Malaysia Outsourcing)
Cost Efficiency	Save on salaries, training, and infrastructure.	Hiring a cloud engineer in Malaysia costs significantly less than in the US or EU, without sacrificing quality.
Scalability	Scale teams up or down based on project needs.	A fintech company in Singapore outsources cloud engineers in Malaysia to scale resources during product launches.
Access to Expertise	Tap into specialized skills across DevOps, automation, and cybersecurity.	Malaysia’s growing pool of cloud-certified engineers provides expertise in AWS and Azure.
Faster Deployment	Shorter time-to-market with round-the-clock development.	Offshore teams work in different time zones, ensuring 24/7 development cycles.
Focus on Core Business	Free up internal resources to focus on strategy, not maintenance.	Businesses can focus on R&D while outsourced teams manage infrastructure.

In-House vs. Outsourced Cloud Engineering Teams

Factor	In-House Cloud Engineering	Outsourced Cloud Engineering
Cost	High salaries, benefits, recruitment, training, office space, and infrastructure investments.	Lower payroll costs by hiring in regions with competitive salary markets (e.g., Malaysia). No need for office space or expensive infrastructure.
Scalability	Limited — hiring or downsizing requires lengthy recruitment or HR processes.	Highly flexible — scale teams up or down based on project needs without long-term commitments.
Talent Access	Restricted to local market availability; may struggle to hire niche experts.	Immediate access to a global talent pool of certified cloud engineers (AWS, Azure, GCP).
Time-to-Market	Slower — development cycles depend on local working hours and team capacity.	Faster — adopt a “follow-the-sun” model with teams in multiple time zones, enabling 24/7 progress.
Compliance & Security	Requires internal training and resources to meet global standards.	Outsourcing partners often bring established compliance frameworks (ISO, GDPR, HIPAA).
Operational Flexibility	Rigid — high fixed costs even during low-demand periods.	Agile — pay only for the resources you need when you need them.

Example:
A European SaaS company keeping cloud engineering in-house may spend months recruiting certified AWS architects at high costs, while an outsourced team in Malaysia can provide the same expertise within weeks at a fraction of the payroll expense, and with faster project delivery.

Also Read: Back-End Developer Salary Guide 2025

Common Challenges and How to Overcome Them

1. Communication and Time Zones

The Challenge:
Outsourcing often means working with teams across different geographies. Misaligned working hours, language barriers, and cultural differences can delay project updates, slow decision-making, and reduce efficiency.

How to Overcome It:

• Choose nearshore or regional outsourcing partners (e.g., Malaysian cloud engineers for Asia-Pacific businesses), as their working hours are closer to Singapore, Hong Kong, or Australia.
  
• Leverage agile collaboration tools like Jira, Trello, and Slack for real-time task tracking and status updates.
  
• Set overlapping hours (at least 2–3 hours daily) for live communication and critical discussions.

Example:
A Singapore-based SaaS company outsourcing cloud engineering to Malaysia schedules daily standups at 10 AM (Malaysia Time), ensuring both in-house and outsourced teams overlap for seamless updates.

Tip: Always define a “communication playbook” upfront, decide preferred channels (Slack vs. email), meeting frequency, and escalation methods to avoid delays.

2. Security and Compliance Risks

The Challenge:
Outsourcing cloud infrastructure involves handling sensitive customer data. Without strict controls, this creates vulnerabilities, especially in industries like finance, healthcare, and eCommerce.

Also Read: How to Outsource App Development in 2025

How to Overcome It:

• Work with vendors certified in international standards such as ISO/IEC 27001, SOC 2, and GDPR compliance.
  
• Ensure regional compliance—for example, Malaysia’s Personal Data Protection Act (PDPA) for data security.
  
• Adopt secure access practices such as multi-factor authentication, VPNs, and role-based access controls.

Example:
A fintech company expanding to Malaysia outsourced its cloud team but ensured the partner adhered to PDPA and ISO 27001. This safeguarded customer data while meeting regulatory requirements for cross-border operations.

Tip: Always sign a Data Processing Agreement (DPA) with your outsourcing partner to ensure accountability for data handling.

3. Quality Control

The Challenge:
Maintaining consistent coding standards, cloud architecture practices, and service levels across an outsourced team can be difficult. Without oversight, project quality may slip.

How to Overcome It:

• Define Key Performance Indicators (KPIs): uptime targets, response times, bug resolution rates.
  
• Schedule regular code reviews using tools like GitHub or GitLab to ensure high-quality, maintainable code.
  
• Align with DevOps best practices to maintain consistency in deployment, testing, and monitoring.
  
• Use Continuous Integration/Continuous Deployment (CI/CD) pipelines to catch errors early.

Example:
An Australian eCommerce business outsourcing cloud engineering to Malaysia set weekly code review sessions and automated testing pipelines. This ensured their AWS deployment maintained a 99.9% uptime standard.

Tip: Start with a small pilot project before scaling up the outsourcing partnership. This allows you to evaluate quality standards before committing long-term.

Recommendation: Businesses that clearly define expectations, invest in secure collaboration, and treat outsourcing partners as an extension of their team experience fewer risks and higher ROI.

Also Read: Why Malaysia Is the Ideal Country to Hire Offshore App Developer

How to Choose the Right Outsourcing Partner for Cloud Engineers

Selecting the right outsourcing partner can make or break your cloud engineering strategy. Beyond cost savings, the right partner should align with your business goals, technical requirements, and security needs. Here are the key factors to consider:

1. Service-Level Agreements (SLAs)

What to Check: Ensure the provider guarantees uptime, issue resolution, and response times that align with your business requirements.

Why It Matters: SLAs act as a safety net, holding your vendor accountable for performance.

Example: A Malaysian outsourcing company might offer a 99.9% uptime guarantee and a 2-hour maximum response time, ensuring minimal business disruption.

Tip: Ask for SLA penalties. What happens if the vendor fails to deliver?

2. Security Standards

What to Check: Verify that the provider complies with international security frameworks (ISO/IEC 27001, SOC 2, GDPR, HIPAA) and local regulations like Malaysia’s Personal Data Protection Act (PDPA).

Why It Matters: Cloud outsourcing involves handling sensitive data. Strong compliance reduces legal and financial risks.

Example: A healthcare company outsourcing to Malaysia should ensure their partner follows HIPAA and PDPA to safeguard patient records.

Recommendation: Request documentation of their compliance audits and data encryption practices.

3. Scalability

What to Check: Assess whether the provider can scale up resources quickly during peak demands or downsize when projects end.

Why It Matters: Cloud projects often face fluctuating workloads, and scalability ensures cost-effectiveness without performance bottlenecks.

Example: An eCommerce company experiencing holiday sales spikes can instantly expand its outsourced cloud engineering team in Malaysia, then scale back afterward.

Tip: Test scalability upfront with a pilot project before signing a long-term contract.

4. Proven Track Record

What to Check: Review case studies, testimonials, and client references. Ask about similar industries and project types they’ve worked on.

Why It Matters: A proven track record shows reliability, expertise, and the ability to handle complex cloud environments.

Example: A fintech startup might choose a Malaysian outsourcing partner with a portfolio of projects involving AWS migration and PCI-DSS compliance.

Recommendation: Ask for at least two references you can contact directly for feedback.

Also Read: How to Build a High-Performing Offshore App Developer Team in Malaysia

5. Local Expertise + Global Standards

What to Check: Look for a balance of cost-effective local expertise with globally recognized technical certifications.

Why It Matters: You want engineers who understand local regulations and culture but can deliver work that meets global standards.

Example: Malaysian cloud engineers often hold certifications in AWS, Microsoft Azure, and Google Cloud, offering world-class expertise at a fraction of US/EU hiring costs.

Tip: Ensure the team has English proficiency and cultural alignment to avoid communication barriers.

Pro Tip for Businesses: Don’t just evaluate the vendor, evaluate their processes. Ask about their project management tools, reporting frequency, and escalation paths. This ensures transparency and long-term collaboration success.

Why Malaysia is a Strategic Choice for Cloud Engineering Outsourcing

Malaysia has steadily positioned itself as a leading hub for IT and cloud engineering outsourcing, combining cost efficiency with technical excellence. Several factors make it an attractive destination for global businesses:

• Competitive Labor Costs – Compared to neighboring hubs like Singapore and Australia, or mature markets such as the US, Malaysia offers significantly lower operating and hiring expenses without compromising quality.
  
• Skilled Workforce with Global Certifications – A growing number of Malaysian engineers are certified in platforms such as AWS, Google Cloud, and Microsoft Azure, ensuring that businesses gain access to globally recognized expertise.
  
• Strong English Proficiency – Malaysia ranks highly in English proficiency in Asia, which reduces communication barriers and makes collaboration with Western teams seamless.
  
• Government-Backed Digital Growth – Initiatives led by the Malaysia Digital Economy Corporation (MDEC) actively encourage the development of a digital-first economy, creating a fertile environment for cloud and IT innovation.

For companies across the Asia-Pacific and beyond, Malaysia offers a strategic blend of cost savings, talent quality, and operational convenience that few other outsourcing destinations can match.

A Practical Example: Outsourcing to Malaysia

The strengths of Malaysia become even clearer when broken down into key decision factors:

Factor	Why Malaysia Excels
Technical Proficiency	Malaysia’s universities and training programs produce a steady pipeline of English-speaking engineers who are skilled in the latest cloud technologies.
Cost-Effectiveness	Labor and operational costs remain highly competitive, offering significant savings over North America and Western Europe.
Cultural & Time Zone Alignment	Malaysian professionals adapt well to Western business culture, and the GMT+8 time zone allows collaboration with Asia, Europe, and overlapping hours with the US.
Government Support	Agencies like MDEC foster innovation, promote cloud adoption, and provide incentives that strengthen the outsourcing ecosystem.

This balance of talent, affordability, and support infrastructure explains why global companies continue to shift their cloud engineering functions to Malaysia.

Also Read: 5 Examples Of Offshoring Companies

Navigating the Hiring Model: The EOR Advantage

Choosing the right outsourcing model is just as important as choosing the right location. Businesses typically have two main options:

1. Traditional Agency Model – The agency helps with recruitment, but the client company often bears responsibility for payroll, benefits, taxes, and legal compliance. This can introduce unnecessary administrative overhead and potential compliance risks.
   
2. Employer of Record (EOR) Model – An EOR becomes the official employer of your outsourced team, managing payroll, benefits, and compliance with local employment laws. You retain direct control over the team’s day-to-day work, while the EOR eliminates the legal and administrative burden.

For most organizations, the EOR model provides a faster, safer, and more scalable pathway to build cloud engineering teams in Malaysia. It enables companies to focus on business outcomes while ensuring full compliance with local regulations.

Conclusion

Outsourcing your cloud engineering team allows you to access world-class expertise, scale faster, and reduce payroll costs while focusing on strategic business goals. By choosing the right outsourcing partner and ensuring compliance with global standards, businesses can maximize the benefits of cloud outsourcing.

Build Your Cloud Engineering Team in Malaysia Without the Compliance Headaches

At FastLaneRecruit, we make it simple for businesses to scale with top cloud engineers in Malaysia through our Employer of Record (EOR) services. With us as your local partner, you can onboard skilled engineers quickly without the hassle of managing compliance, payroll, or HR administration.

Ready to scale your cloud engineering team?
Contact FastLaneRecruit today and discover how our EOR services in Malaysia can help you build a high-performing, cost-efficient cloud workforce.