How good or bad is a creche for a child?

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I have a friend whose twin kids have grown up in a creche and when one day I accompanied her to the creche to pick up her kids, I found the kids in a pitiable state. The housekeeper gave a mouthful to the mother and told her that she had sent no woollens with the kids and they were not even dressed properly. The trip back home was just a series of cribs and complaints by my friend against the creche. On another occasion, a cousin of mine who was really small at the time was eating mud outside the gates of the creche and her mother had unexpectedly turned up and found no one watching over her daughter. She removed her child from the creche and kept a housemaid instead. What is better? Creches in India charge quite a bit and I feel if possible should be avoided.