

An online exam provides flexibility and security to the examination process. Once all the questions are uploaded in the system, the system can shuffle and give questions in different orders to different students. This minimizes the chance of cheating.
However, this is not possible for a paper-based exam, the paper cannot be printed differently for every student, and thus it gives leeway for malpractices.
There is also a possibility for the paper to get leaked while passing it to different examination centers, this risk is mitigated by the use of an online examination system.
In an online exam, the results are calculated instantly and accurately.
In a paper-based examination, there are a lot of steps involved, resulting in the paper evaluation process to take up a lot of time and making it prone to human errors.
In an online examination system, the exam can be conducted wherever the candidate is. The exam surveillance can be conducted with the help of a web camera and microphone. Such a method of conducting an exam is called Remote Proctoring.
When an exam is conducted remotely, hundreds of thousands of students can appear for the exam, without the need to spend on travel and accommodation.
This also solves the problem of scheduling exams across various exam centers, hiring invigilators, providing security to these centers, etc.
In an online exam, the logistics cost is minimum. Examination Process is managed using technology. It is beneficial when you are looking to conduct the exam for multiple candidates at different locations.
The result processing is also done online and hence the logistics cost is limited.
In a paper-based exam, the logistics cost is high, since a lot of factors like exam centers, hiring invigilators, etc, has to be considered. Question papers, answer sheets need to be delivered at designated exam centers within a defined timeline.
Also, there needs to be a system to collect back answer sheets from all exam centers to a central location for further processing.
There are online subjective exams available where a candidate needs to write answers in simple English language with special symbols/ diagrams etc.
Online Subjective exams can be managed with facilities like speech to text, uploading images of diagrams drawn by the students for answer related to exam questions.
Examiner can evaluate subjective answers easily using individual login.
Due to the flexibility of online examination systems, the cost of the exam per candidate is around Rs. 10 to Rs. 50. Meanwhile, for paper-based exams, the cost per candidate is Rs. 300 to Rs. 400.
Thus the online examination system becomes a more affordable, feasible choice to conduct exams.
Online Exam can be managed in auto surveillance mode where a web camera connected to the system would take snapshots of the student for the exam and can act as an invigilator/supervisor; which is again cost and time efficient.
This would ensure that the same student is appearing for the exam and system is able to keep track of the student during the exam.
While in a paper-based exam there is a need to hire an invigilator for a designated set number of students.
Designing a question paper for a digital exam is relatively easy and it also reduces the chances of paper leakage.
While designing a question paper for a paper-based exam is a daunting task. There are an endless number of logistical activities right from manual question selection, design of the paper, the printing of the paper, distributing of the question paper to various exam centers in a secure manner.
An online exam gives you the flexibility to design exam papers, evaluate and grade them, there can be the same or different questions for students also.
However, in a traditional exam, there is little to no flexibility, last minute changes or corrections are also not possible.
It is helpful for further decision making or shortlisting process.
In a traditional exam result processing is a manual and huge administrative task.
Many examiners are involved in the compilation of the final result. Such a result is also error-prone.
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Summary An online exam provides flexibility and security to the examination process. Once all the questions are uploaded in the system, the system can shuffle and give questions in different orders to different students. This minimizes the chance of cheating.
I can not agree more. Online exams are definitely going to take over traditional paper-based examinations in very neat future. I am confident that the contemporary technologies are mature enough to resolve all impediments for this transformation.
I second your notion brother.