Indian IT company Infosys secures a 10 year IT deal with Vanguard for $1.5 billion, which is Infosys’ biggest deal in its working history.
As part of the deal, Infosys will provide design, development, deployment, and support to Vanguard’s full-service defined contribution (DC) business. This strategic partnership will deliver a technology-driven approach to plan administration and fundamentally reshape the corporate retirement plan experience for Vanguard sponsors and participants.
Vanguard is the largest DC asset manager in the U.S. with $1.3 trillion+ in assets. It is the 2nd largest provider of mutual funds and ETF in the world.
Infosys is a global leader in next-generation digital services and consulting, with deep expertise in helping companies deploy transformative technologies to enhance their businesses.
Other Indian IT companies like TCS, Accenture, and Wipro also participated in this deal but Infosys won it in the final round against Wipro Technologies.
As per the sources, Vanguard also holds a nearly 3% stake in Infosys.
Together with Infosys, Vanguard will provide a cloud-based recordkeeping platform, enabling greater insights and unprecedented personalization to help deliver better outcomes for nearly five million participants and 1,500 sponsors.
Planned enhancements for sponsors include AI-enabled analytics capabilities, improved visibility of participant behavior, and ubiquitous operational support. In addition, the partnership will accelerate Vanguard’s ongoing efforts to build a state-of-the-art participant experience, including a redesigned participant website, integrated advice, and intuitive technologies.
Approximately 1,300 Vanguard roles currently supporting the full-service recordkeeping client administration, operations, and technology functions will transition to Infosys. All Vanguard employees currently performing these roles will be offered comparable positions at Infosys.
Infosys currently serves half of the top 20 retirement service firms in the US.
Vanguard currently serves as a strategic partner to nearly 1,500 plan sponsors. As of May 31, 2020, Vanguard managed $5.9 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers more than 425 funds to its more than 30 million investors worldwide.
The deal with Infosys can go up to 10 years, including design, development, deployment, and support, with the contract value growing over $2 Billion.