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10/22/2002 - Updated 10:16 AM ET

Internships go virtual as firms seek ways to save

Some cost-cutting employers are trying a novel alternative to the traditional student apprenticeship: virtual internships.

Companies are hiring college students to work on projects from afar rather than relocating them for short-term assignments. The programs, dubbed e-internships, are a new way for companies and pending graduates to get connected.

Employers are experimenting with the idea because more college students have access to computers, virtual work has become more commonplace and companies want to tap more-affordable labor sources. Firms can save money because the internships may be short in duration or unpaid. For example:

  • At Cardinal Health in Dublin, Ohio, college students in states such as Arkansas and Ohio have been hired for virtual internships. Using school computers, they've worked on data warehousing and other projects and searched for errors on Web sites. The students are paired with a mentor and are paid. The company is a provider of health care products and services.

Says Dennis Joseph, 23, a senior at Southern Arkansas University in Magnolia, who is testing applications as a virtual intern: "It tests your communication skills and shows you can work virtually."

  • International Truck and Engine, a maker of commercial trucks and diesel engines based in Warrenville, Ill., has launched a virtual internship program. Last year, four students at Hiram College in Hiram, Ohio, worked for the company and were supervised by phone and e-mail. The students, who each received $500, worked on a Web-marketing project.

"We get a lot of great work at a low cost," says Jim Clarke, manager of channel development in used truck operations. "The only thing is (that) they don't learn anything about the company culture. But it's a good recruiting tool."

  • At Edwards & Hill Communications in Baltimore, about 10 college students have participated in virtual internships. Using their own computers, the students post casting notices online for the multimedia company, which runs a Web site catering to the entertainment industry.

No one knows how many companies are offering virtual internships, but hiring experts say they're a creative approach that could catch on.

And even though students may never set foot in the companies that hired them, the e-internships often retain the hallmarks of traditional programs. Students often have mentors, projects to work on and online brainstorming sessions with colleagues.

"It was a pretty cool experience," says Guru Pinglay, 26, a technical support analyst at Cardinal Health who previously worked as a virtual intern and was hired in June. "The communication problems were more, but that was the only disadvantage."