investment firm Vanguard
have signed a large multi-year IT contract to deliver a technology-driven approach to plan administration and reshape the corporate retirement plan experience for the latter’s sponsors and participants.
Sources told TOI that the hotly-contested vendor consolidation deal is pegged at over $700 million. The scope of the contract is expected to grow over time. Around 1,300 Vanguard roles currently supporting the full-service record-keeping client administration, operations, and technology functions will transition to Infosys. All
currently performing these roles will be offered comparable positions at Infosys and near Vanguard’s offices in the US.
Infosys said transitioning employees will receive the same salary and comparable benefits for a transition period of 12 months, plus meaningful incentive opportunities.
Together with Infosys, Vanguard will provide a cloud-based record-keeping platform, enabling greater insights and personalisation to help deliver better outcomes for nearly five million participants and 1,500 sponsors. Vanguard manages more than $1.3 trillion in assets.
“For decades, Vanguard has propelled best practices and innovation…to steward the financial futures of millions of Americans saving for retirement,” said Martha King, MD of
Vanguard Institutional Investor Group
“Infosys has deep expertise serving leading retirement services firms in the US and, as part of this strategic partnership with Vanguard, we look forward to transforming the retirement industry while helping clients manage their retirement needs leveraging advanced digital solutions,” said Infosys CEO Salil Parekh.
Infosys currently serves half of the top 20 retirement service firms in the US.