Grid computing is a modularized way of structuring network resources so as to share the information and resources, to perform heavily intense problems. Grid computing is a part of distributed processing which allows the distribution of the problem over multiple computational resources. The formation of grid decides the computation cost, the performance metrics of the operation to be carried out. The grid computing favours the formation of an adhoc structure formed at the time of request (it does not hold an infrastructure) that is termed as virtual organization. This paper presents dynamic source routing for modeling virtual organization.