I'm speaking from firsthand knowledge. How embarrassing for you to think that because you know some Private Equity folks (generally the worst people at managing technology), that 100% of the rest of the world is doing (or not doing) exactly what they're doing.
You wrote paragraphs about how expensive it is to hire people to do stuff in a datacenter. What is your argument, if it is not that this is more costly than outsourcing it?
This entire debate should be recast the simple "build vs buy" concept that it already is.