It owns no property, pays no salaries and receives no material dues. The real University is a state of mind. Pirsig only got it half right. Organisations in general are legal fictions. They can own property, pay salaries, but need have no material existence.
Organisations are virtual and so suit computer technology and the Internet.
The way virtual organisation are run may be much the same as we have now, minus the trappings of material reality. But, this may be small comfort to worried managers. Where government a service is delivered via telecommunications, the outsourcing of the function can be facilitated. When a service is made available by phone or on-line, all the client knows is what they hear, or see on the screen. Alternatively the system could remain in-house, while the service and support of the information on the system was outsourced, or both the system and support could be moved.