trust is overrated (Score 0)

1. Trust is overrated. You should be looking at the processes that your outsourcer uses rather than the people who perform them. Look for an annual SAS70 or SYSTRUST audit/certification and shop elsewhere if you don't get it and you are paranoid.
2. Competence - The idea that that sysadmin should have access to the contents of the filesystem is quaint. Encryption solves the problem on one side, while a secure log host that the outsourcer *doesn't* administer will help you enforce accountability. AlertLogic do an appliance based log archiving system that would be ideal.