Besides the non-computer infrastructure, I have yet to see a colocation facility where customers didn't need small physical tasks on a daily basis. If these are just template setups where identical compute, storage, and networking gear are deployed cabinet after cabinet, then maybe. It takes either a lot of SDN and unified storage fabric or some very specific target workloads (they mention Netflix caching for ISPs, so meh).
Amazon is getting killed having to deal with multiple generations of very cookie cutter hardware and customers with varying demands leading to the incredible complexity in AWS offerings, all at highly elevated prices compared to just buying your own hardware and paying colocation costs (unless instance needs are way below 8x5, much less 24x7).
They would be almost better off with robotic / remote controlled site techs to cover 80% or so of physical needs and the same robot controllers sent on-site when the robot falls short. If they are doing the absolutely stupidest thing in field tech dispatch, 3rd party contractors who hire a Bob, it will be a giant shit show.
With respect to outsourcing, I wish someone would compile a comprehensive report on the productivity and hidden costs of a) highly motivated and skilled in-house workers vs. b) lackadaisical paycheck collectors vs. c) offshore contractor incompetence vs. d) onshore contractor dice rolling. I know my employer can hire 5 guys in India for what they pay me, but having to ask 3-5 times for a task to get done before it gets done correctly has to incur some costs besides employee time burned and latency for completion, like iteration #4 where you've yelled at them finally to do it right, and they cause an outage.