This is a tough question. I've been in the childcare field for 12 years and still can't answer the question for myself. I'm sure it will only get harder once my child is born and I have to hand them over. Instead of giving pros and cons, I'll just suggest things to do that could help you with whatever you choose.

I'm currently a nanny and maybe slightly biased on that as well as on home childcare as my mother is fully accredited and runs one of those which is where my child will go more than likely.

I would also like to mention Montessori schools. I've personally never worked in one but I have cousin who does and a previous charge who was very well educated in this way (parental education is a must as well).

Daycare

• Make sure you know the teacher to child ratio. I've seen daycares where the children aren't given enough attention because there are too many per teacher. A good balance at every age is important.
• Get to know your child's head teacher and the backup in case they do get sick so you know their styles. One could be the greatest but that sub might not be.
• Know their payment policies. Some will charge if your child is sick and doesn't come for the day. I thought I would throw that in. Ask about their hand cleaning, when they require a sick child to stay home, etc.
• Make sure you can drop in at any time to check on your child and then do that randomly and know what they're check out policy is. When I worked for my mom we required written permission, advanced notice and copied their ID to be sure.

Home Childcare

• Really needs to be accredited. I believe there is a site that holds their information and how many times they've been admonished. I can't quite remember but if there is one where you are, look into it.
• They need to have been inspected regularly as well. BE able to drop in.
• Some have voluntary meal plans that they get paid to provide and if so, make sure that is what your child is getting. Its good nutrition but I've heard of people getting paid and then not giving it.
• Check the teacher to student ratio. They need to go by that too. It may be a bit different, I can't remember, since they are working with different ages at the same time. Also check how they manage the children. Are the infants able to be walked on, etc. Obviously this is a big duh but you never know.

Nannying

• Have the best contract you can. I can even email you mine if you want to look at it or a blank one so you can see how detailed it is. This is separate from what you would have with an agency (I recommend looking on international nanny association to find a good one if you haven't) and it needs to be plain as day and updated annually.
• I get off at 6 but have flex time till 6:30 then it goes into overtime. This covers both of us. We pondered an arrangement of one Friday a month, I get off at noon and then just work later another day to cover it. That way we cut down on having to take off days.
• Off time: I get 10 days. 5 when they go on family vacation and 5 on my own that I can split up however. They always have two forms of backup or I take my charge to my mom and it doesn't count for off time. That's when its good to look into a day care anyway and also find out their drop in rate in case your nanny gets sick.
• I don't tend to get sick but my charge gets sick really easily so it isn't lessened because she's not constantly with children. Your child may vary though. We still encounter kids with green snot.
• We socialize by having weekly classes, meeting families at the park and story times. Its not the same but it does give a balance of her playing by herself, with me, and with others.
• Give a friend or relative a key so they can drop in on them and if you're going to tape your nanny, make sure to let her know first.
• Kids can always be parked in front of the TV no matter where they are. See about getting something on their curriculum. Try for homework as the kid gets older so they have to give you something back.
• They'll get sick no matter who they're near and of course you'll be super protective over who is watching your child. With time you start to trust in your decision and it goes well in the end as long as you stick on the provider no matter what and keep an eye on how your child is behaving. No decision is better than the other and you can always change it.

  Wish you all the best and everyone else struggling with this as well.