The US-headquartered company said the partnership would deliver a technology-driven approach to plan administration and fundamentally reshape the corporate retirement plan experience for its sponsors and participants.
Infosys will assume day-to-day operations supporting Vanguard’s DC (defined contribution) record keeping business.
Through this partnership, Vanguard will provide a cloud-based record keeping platform to help deliver better outcomes for nearly five million participants and 1,500 sponsors.
Nearly 1300 Vanguard roles currently supporting the full-service record keeping client administration, operations, and technology functions will transition to Infosys, said the company in a press release.
“All Vanguard employees currently performing these roles will be offered comparable positions at Infosys in close proximity to Vanguard’s offices in Malvern, PA, Charlotte, NC, and Scottsdale, AZ. Transitioning employees will receive the same salary, comparable benefits for a transition period of 12 months, plus meaningful incentive opportunities. Infosys is dedicated to this business and the transition offers prospects for long-term career growth and development,” said the company.
Planned enhancements for sponsors include AI-enabled analytics capabilities, improved visibility of participant behaviour, and ubiquitous operational support. In addition, the partnership will accelerate Vanguard’s ongoing efforts to build a state-of-the-art participant experience.
“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 Salil Parekh, chief executive officer, Infosys, adding the company is “delighted” to welcome Vanguard employees as a part of this transition.
Plan sponsors will continue to be served by Vanguard’s relationship management teams, strategic plan design, and communication experts. Additionally, Vanguard will oversee all aspects of its investment management and guidance for both sponsors and participants, including ongoing development of its accessible, holistic, and personal advice services. Participant phone calls will be serviced by both Vanguard and Infosys.
“For decades, Vanguard has propelled best practices and innovation within our DC business and across the industry to steward the financial futures of millions of Americans saving for retirement. Our partnership with Infosys will embolden these efforts,” said Martha King, managing director of Vanguard Institutional Investor Group.