There are two parts to this question: recruitment and selection. Recruitment helps generate a pool of talent, while selection evaluates and validates the credibility of talent.
Recruitment: It will depend on the nature of talent you are sourcing; access to the internet is pertinent for the success of your efforts to attract talent. I think it is important to breakdown and understand your target market before choosing to invest in one media. The internet is surely gaining ground, especially in the Tech/ITES sector; however, traditional sources such as print advertising, networking, and referral schemes are still popular. In some cases, the internet enhances the effectiveness of traditional methods.
Selection: More and more firms are using web-based skills or personality assessment tools. I personally think the future will be the best blend of both worlds, incorporating traditional interviewing techniques (Behavioral, panel, face-to-face) with web-based assessment.
Hope this helps.