IT will only support the HR interventions you are making; it can not replace human interface required in HR profession. Yes, a lot of rudimentary things like time & leave management, loans, advances, payrolling, PMS, tour advances, grievance redressal, etc can be properly done thru IT.
With the introduction of IT in HR processes, I have seen the ratio of total manpower to HR manpower, coming down from 80:1 to about 250:1 now, i.e. we require only 1 HR guy for every 250 in the company !
That means if you r a company of 2000 people, u may need only 8 HR guys to take care of the whole gamut of HR ! Power of IT !!