|205 Gbs is tiny by today's standards. |
You passed the LBA limit of 132 GBs a long way back so there is no reason why you should not be able to install a larger hard dsik.
However if the hardware is as old as the software they may be a problem getting one. The chances are that the hardware only supports PATA hard disks and modern large disks are SATA.
Manufacture are cutting down on PATA hard disk so they are getting hard to come by,
And 4 GBs of RAM is not a lot either, but that depends on whether you have the 32 Bit or 64 bit version. If you have the 32 bit version there is no point in going beyond 4 Gbs it will ever get used.
So your IT department may well be telling you the truth. But because you give no details of the hardware it is only guess work. Difficult to say with any certainty what can be upgraded when I dont know what it is you are upgrading