Vanguard, one of the largest investment companies in the world, on Tuesday said it will partner with Infosys as part of its ongoing strategy to enhance and evolve its 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 its sponsors and participants. Vanguard is the largest DC asset manager in the US and has been recognised by trade organisations and research firms for its retirement services and thought leadership, a statement from Infosys said.

Infosys will assume day-to-day operations supporting Vanguard’s DC record-keeping business, including software platforms, administration, and associated processes. Approximately 1,300 Vanguard roles currently supporting the full-service record-keeping 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.

“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 Martha King, Managing Director of Vanguard Institutional Investor Group.

“Our partnership with Infosys will embolden these efforts, enabling a ground-breaking 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.”

Additionally, Vanguard will oversee all aspects of its investment management and guidance for both sponsors and participants, including the ongoing development of its accessible, holistic, and personal advice services. Participant phone calls will be serviced by both Vanguard and Infosys. Together with Infosys, Vanguard will provide a cloud-based record-keeping platform, enabling greater insights and unprecedented personalisation to help deliver better outcomes for nearly 50 lakh participants and 1,500 sponsors. Planned enhancements for sponsors include AI-enabled analytics capabilities, improved visibility of participant behaviour, and ubiquitous operational support.

Related Topics