Technical and business domain skills are both necessary
Technical skills should be first and foremost when it comes to finding the right talent for your IT projects. This means that software programmers need to be well versed in in the likes of Java, .Net, Oracle, or SAP, or whatever the project requires. However, both software 'consulting' skills and business domain knowledge are also critical components of the capabilities mix. They are not something learned in school, but rather obtained through real on-the-job experience. Although China has a rapidly expanding talent base with these skills, it is still critically important to ensure adequate due diligence is performed on service providers. Don't just look at how good a provider's coders are, but rather ensure that they can communicate effectively using business terminology relevant to your domain.