Global sourcing is normally used to describe strategic sourcing in the current global setting. Global sourcing has been included in the procurement strategy by most of the companies. Global efficiencies in delivering a product or service is the main objective of global sourcing. There are so many examples of global sourcing. Products and services like labor extensive products with low cost labor and other product making with low cost are included in global sourcing which are normally found in low cost countries. But global sourcing is also found other countries as well.

Procurement strategy of the multinationals is associated with the global sourcing. In this strategy, buying organization searches for economies through corporate benchmarking under global sourcing. Global sourcing involves integration and coordination of common items, processes, designs, and technologies across world wide locations. There are number of advantages with the global sourcing. Knowledge about the potential market, tapping skills, developing alternate vendor sources, and increasing supply capacity are the most common advantages of the global sourcing. One can get many things with the global sourcing.

International Procurement Organization is the global sourcing strategy element for an organization. Global sourcing is responsible for identification of key suppliers across the sourcing categories and help to satisfy the sourcing requirements. Global sourcing has involved many important things for the low cost labor in many countries. Global sourcing has identified many different low cost countries including India and Eastern Europe. There may be some hidden cost involved, risk of intellectual property and some other factors but still global sourcing is very effective and is used widely. The centralized strategy of multinational is the key feature of global sourcing. Standardization is made with the help of global sourcing and its main focus on the purchasing economies. Although it is thought that global sourcing is only for the low cost countries but it is not limited to the low cost countries.