Fierce international competition in engineering services including engineering education has resulted in a number of attempts for globalization of education delivery. Establishment of virtual universities where infrastructure costs are significantly low, have been envisaged as one strategic way of succeeding in educational markets of developing countries. Quite often the perception is that the virtual university is a freeway via which any student in any country can be enrolled and educated. However, the scenario is not that simple. The success of a global virtual university depends on a number of factors including cultural aspects of various societies, government regulations, division of the expenditure, resources, research output, patents and the revenue. This paper first presents a global overview of engineering education both in qualitative and quantitative terms and then details the possible hindrances in the path of global delivery of engineering education via a virtual university. It also suggests ways to overcome these hindrances to arrive at a win-win situation for both vendor as well as provider nations.