Salaries too High - Divide by 3

In North America, the salary of an IT worker has risen greatly since the mid-1990's due to various factors (perceived and otherwise). Offshoring is disliked by some people. The dot.com bubble burst but the salaries didn't. If the offshore salary are deemed 5 for 1 (excluding the rampup and offshore adoption costs) If you want to compete with offshoring the formula would be (Salary - (Salary/Three)). So a 50K salary would equate to 33K. Once you're into this realm the "cost attractiveness" of offshoring becomes considerable less. Of course, most staffers would be quite relunctant to take such a cut.

I believe the Universities/Colleges have up'ed the expected entry level salary within the IT space...maybe it is time for business to reset and lower those expectations. ....so you need to attrition some of you existing staff...and get/keep a couple of good people, hire 5 new graduates for every one staff( at lower entry salaries). Of course you need to demonstrate to the new grads why your company is the one to work for.

Your thoughts?