There are two points to my argument:
1) the administration cannot properly value IT because they (likely) do not understand how it works
2) the administration likely values their own staff and their athletics much more than the revenue they generate, and thus would never outsource those staff even if it was costing the school a lot
Regarding (1), I would point out that it's unlikely they realize how inefficient having remote IT can be, but they'd realize how inefficient it would be to have remote coaching. For instance, the reason that you wouldn't outsource a football coach is that they need to have direct, personal communication with their team. Having someone in a foreign country "coach" your team would be very unproductive. Likewise, a President in another country would never be able to keep up with the many meetings with professors, deans, and bureaucrats that keep the school running.
So, my point is more that a President would easily recognize the problems in outsourcing certain jobs, but not realize that many of the same problems will occur when you outsource IT. The truth is that infrastructure is often extremely complicated, with many interdependent features. But when you aren't in the same location, you cannot as easily manage it.