The use of IT to support global processes has opened up opportunities for some countries to source skills from other countries often located in very different parts of the world. This study investigates the relationship between ICT Capacity and Skills and their effects on Economic Development from 2001 to 2005 for each of the 183 countries that are members of the United Nations. Following an analysis of ICT Capacity and its relationship to Skills and Economic Development, this paper reports positive correlations. The contribution of this paper is in the development and testing of a conceptual model that illustrates these correlations and explains why digital divides are narrowing in some countries but widening in others. This relationship between ICT capacity and skills has implications for the global sourcing of skills between countries and regions.