The $1.3 trillion IT industry is composed of a broad range of services and products, including systems integration, data networking, high-tech equipment manufacturing, outsourced software engineering, and technical support. After a number of disappointing years, the industry has begun to grow, driven by systems to manage customer and company information, increased network installations and upgrades, aggressive new product introductions, and concerns about network security. Future challenges include increased globalization and pricing pressure, continued innovation, and successfully managing outsourcing relationships. The need for talent, of course, remains front and center to success. The dot-com bust forced the IT industry to retool the way it does business, creating the need for a host of new skills for leaders and employees alike. Leaders need to find and manage people with high agility, who can wear multiple hats and work in cross-functional teams. Because many of these companies are driven by a handful of very strong visionaries, leadership development and succession planning are essential if they are to remain successful in the future.