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My old employer Thoughtworks does this.

http://www.thoughtworks.com/careers/application-process

It's a fantastic way to vet candidates and there are multiple exits to the process. For obviously bad submissions, it's probably a no-hire, but I've even seen incomplete assignments get someone to the next level and then a hire.

Some people get sent to ThoughtWorks University which basically trains them to code, work in an agile environment and how to be a good consultant. Everyone that goes says it is a great experience.



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