The sponsor retains control of the systems, data, standard operating procedures (SOPs), and project related oversight to the extent they desire and agree.
Being involved at a higher level to understand sponsor needs helps the CRO manage resources.
This allows the sponsor to offload the management of the employees and reduces their headcount but at the same time allows them to have the same individuals performing their services thus maintaining continuity across the project.
One reason that functional sourcing is becoming a more widely used outsourcing model is the strides that technology has made in the last two decades regarding remote access.
One method is to put in a dedicated hard line that connects the CROs machines to the sponsor's systems.
Another commonly used method is where the sponsor treats the CRO like a remote employee by providing them their VPN software or a company issued laptop.
The concept of low cost centers for Functional Sourcing is significant because it allows CROs to provide resources to sponsors around the clock.
The most considerable benefit to the sponsor is that functions can be resourced to regions of the world where the labor costs are significantly lower than the US.
Hybrid solutions include any situation where many outsourcing models are used in diverse and cross functional ways.
The sponsor, in turn, benefits from working with the senior management of onshore local partner while, again, taking advantage of lower costs and increased availability of the global resources.
More and more drug companies—including Merck and Pfizer—are moving from "transactional" (capacity- and project-based) outsourcing to "functional" (competency- and portfolio-based) partnerships.”[1]