Chennai, NFAPost: Infosys has announced that it has won a contract with Vanguard, the largest DC (Defined Contribution) asset manager in the US.
The partnership between these companies will advance digital transformation of Vanguard’s defined contribution recordkeeping business. Vanguard has been recognised by trade organisations and research firms for its retirement services and thought leadership.
“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,” said Vanguard Institutional Investor Group Managing Director Martha King.
“Our partnership with Infosys will embolden these efforts, enabling a groundbreaking approach to plan administration. Coupled with Vanguard’s increasing investment in advice capabilities and client experience, we will set a new bar for personalisation, ease, and efficiency for sponsors and participants alike,” she added.
Through the partnership, Infosys will assume day-to-day operations supporting Vanguard’s DC recordkeeping business, including software platforms, administration, and associated processes. 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, Infosys said in a BSE filing.
Together with Infosys, Vanguard will provide a cloud-based recordkeeping platform, enabling greater insights and unprecedented personalisation 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 behaviour, and ubiquitous operational support, it added.
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.
“Infosys is excited to partner with Vanguard in the digital transformation of its defined contribution business,” said Infosys President Mohit Joshi.
“Our platform will create a new standard for the industry as we seek to drastically improve the retirement savings experience for plan participants and sponsors through the use of cutting-edge digital technologies,” he added.
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 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, the IT company said.
Martha King, currently head of Vanguard Institutional Investor Group, will also transition to Infosys to head the firm’s Mid-Atlantic Retirement Services Center of Excellence and serve as the firm’s Chief Client Officer. The transitioning Vanguard crew will report up through King and Joshi.
“The experience and expertise of Vanguard’s technology and operations teams, along with our shared, relentless client-first focus, will help ensure a seamless experience for participants and sponsors,” said Martha King.
Leveraging Global Expertise
Infosys currently serves half of the top 20 retirement service firms in the US, helping clients to manage risk, improve participant experience, and deliver better retirement plan outcomes through business transformation, technology services, and digital solutions. The firm offers end-to-end, enterprise-wide insurance and retirement business-process solutions across five core businesses: life insurance and annuity services, producer services, retirement services, employer sponsored services, and functional BPO services.
“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.
“We are also delighted to welcome Vanguard employees joining the Infosys team as a part of this transition,” he added.
“Partnerships can accelerate improvements for clients, and we have a long and successful history of drawing on world-class external expertise across our investment management, technology, and client service functions,” said Vanguard CEO Tim Buckley.
“Vanguard has revolutionised investing, making it more accessible and affordable, and our partnership with Infosys will help us transform the retirement industry for the benefit of all investors,” he added.
With more than $1.3 trillion in DC assets, Vanguard helps millions of Americans save for a secure retirement. Vanguard currently serves as a strategic partner to nearly 1,500 plan sponsors, providing world-class investment management capabilities and industry-recognised retirement and investment thought leadership.
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.
