Email "relay forwarding" through Google

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http://serverfault.com – I currently attend a University that is in the process of swithcing all faculty accounts to Google, in spite of the privacy issues relating to research and international contacts. The current "solution" being offered by our ITS dept. is what they are calling a "relay forward", which they claim will basically set up a "dummy" account with Gmail, and then "relay forwards" emails to our chosen email provider, without sending any actual data through a Google server. Is this even possible? (HowTos)