[h43k3r]

I have met many people in my life who are/were way better than me in chalking out algorithmic solutions but didn't even had a single bit of knowledge how computers and real softwares work. Many of these people are not good team players, don't understand the importance of delivering things, or simply aren't interested in the work they are doing.

On other side, I have also met many people who are extremely good at competitive programming and extremely good at their workplaces also.

So taking these two as suppositions, I have concluded that competitive programming skill is not something which can't be relied upon as a judgement factor for a good candidate.

Note- I once used to be a good competitive programmer during my college so I have seen both sides of it.

[banachtarski1]

I agree - I don't think competitive programming should be used as an interview tactic. That being said, if you look at the rating distribution of TopCoder/Codeforces problems, most interview problems (even at Google) tend to be around the 1500 Elo level. Around the 1900 Elo level and above, I think it's an extremely strong signal for a very talented thinker.

I'd much rather prefer a discussion about a previous project (open source or at work) with pointed questions about the code/design choices, a take home, etc.