This thesis identifies some key Considerations to be considered to create an efficient virtual private network and also investigates to understand some efficiency problems affecting the interchange of information in such networks. It then outlines some possible solutions to manage such problems. The ICT and the telecommunications have been advancing at a rapid rate. This has been seen in the exchange of information in virtual networks such as the social networks like Facebook, Skype, Google talk, Yahoo messenger, Twitter etc. The need for maximum security, privacy and cost effectiveness in different organizations, institutions and private sectors etc makes it useful and needful to have efficient virtual private networks. Understanding the problems affecting the information interchange in such networks and suggesting some probable solutions will both help the provider and the user.