A university should be working at the cutting edge. In the 60s, they were there inventing networking and email, but those are well established technologies now. There's no reason of a university to spend its resources on routine infrastructure when corporate entities can do it cheaper. Look at the prevalence of Microsoft, Google, and Oracle in the daily operations of any major university. If foreign corps can out-compete the domestic corps, why should the government subsidize an uncompetitive business?
Keep in mind that a lot of those Indian workers will have US degrees - US universities have been admitting more and more, partly to make up for declining state support. Many of those students come to the US hoping to turn a student visa into a green card, but most of them end up back home.