3. Most companies and governments today are under increasing pressure to operate more efficiently. And many of them are realizing that effective procurement can reduce costs, improve processes and increase productivity. In the past few years strategic sourcing has become a frequent used approach in this context. But what is strategic sourcing? To put it simply, it means that companies are adopting a new strategy for how they buy services and products. Strategic sourcing is a systematic process of analyzing expenditures, internal and external influences, and finding out what kind of supplier relationships are necessary to help achieve the company’s goal. Before the company decides to purchase a product or service, strategic sourcing is used to consider the total cost of a product or action, not just the price alone.