Control is lost, at least to some degree. On the other hand, outsourcers are in the business to make a profit. Recurring expenses may go down if the outsourcer provides more efficient service. Overall long term costs generally favor a prudent balance of outsourcing and in-house management and vary from institution to institution. Quality may suffer.
Institutional knowledge is lost for outsourced functions.
Allegiance of staff is to the check-signers. University technology is not generic . Every campus environment, infrastructure, network and culture is unique. Technology is not self-contained . It reaches every location, activity and constituent of the university.