One of day job is to price manpower here vs other places.
We usually give 2 reqs for a single req in san diego.
This is for engineering jobs and we have been doing pretty good with this model so far.
India/China is not cheap but good thing about these countries are: They have millions of engineers graduating every year. An young engineer with couple of years exp make an old engineer who is 10+ exp and bloated salary completely obsolete.
What you need is good mid level mgmt to manage and maintain the task/process flow along with clear directions.
Write code or testing is not rocket science and one does not get better with time which can command higher salary
If you are on cutting edge technology, then its even more level playing field between experienced or noob..