I work for a company based in Idaho but I live in Texas. This type of work situation is not totally new to our day and age, but it is quickly becoming more common.
This is because of the influx of new tools that make telecommuting more effective and easier. GoToMeeting, an online meeting tool is one such tool. It allows the parties to interact over the phone and for the project instructor to access the other parties computer, or for the other party to view the presenters screen. This can be a very effective tool in a business or teaching environment. With my current job I teach a lot of people how to use various websites, like eBay etc. The customers often have a very limited understanding of how to use technology, so this allows me to first show them exactly how the technology works, and then watch them while they repeat my instructions. The only quibble I have with this software is that the teleconferencing tools are not very well designed. The price is pretty reasonable for small operations, and you can have presentations of up to fifteen people for the plan I employ, but the teleconferencing is often a problem for my customers. Overall a good product though.