I came across this recently: http://www.proctoru.com/

The endpoint is a model that will satisfy the employers - whether that's webcam or live proctoring or any combination thereof is irrelevant.

One variant of live proctoring could be an arrangement in which universities give students a number of online options to fulfill a particular requirement - cs, math, physics, etc - and administer their own exams. So the university would simply use it's brand to issue the stamp of quality. In a sense - this is cannibalism for the university. But I think there are public schools that are struggling to serve their students in a financially feasible way. This could be a good way to streamline...

I think it was vWorker, but you're right. They have a time tracking tool which randomly takes screenshots, and webcam shots. Now I don't know about screen shots, but for Udacity the final exam tracker should be allowed to randomly take webcam shots.

Maybe there will be an added inconvenience of opening the software, maybe there'll be people who might game the system. But for a large part of the population I think it should work

I agree, by outsourcing to test centers they are side stepping a giant problem. I hope it's a short term solution. I loath the thought of testing in a clinical setting for a stressful exam, there has to be a better way.