Predictions that the IT department is fading away are premature, according to the more than 580 respondents to this month's CIO Insight survey: IT departments have grown 3 percent on average in the past 12 months, and nearly 60 percent expect the number of IT employees at their companies will increase over the next two years. But where will the new hires come from? With outsourcing remaining at modest levels, and few companies tapping college IT graduates (in part because they are seen as poorly prepared for corporate IT), CIOs will need to refocus on retaining IT talent and compete against other employers for IT pros with the right mix of skills. To do so, they'll have to improve IT morale, reconsider the incentives they are currently offering, provide nontechnical as well as technical training, and do a better job of creating clear career paths for IT personnel. Companies can't afford to put human resources issues on the back burner anymore.