Infosys Vanguard deal: 10 key details of first Billion-Dollar deal of Infosys

Infosys Vanguard deal is making a noise in the Indian IT Industry. On July 14th, 2020, Vanguard and Infosys Announced Strategic Partnership to advance the digital transformation of Vanguard’s defined contribution recordkeeping business.

The multi-year deal that Infosys won from US investment firm Vanguard is worth more than $1.5 billion.

Winning this deal during the Covid-19 pandemic when companies are taking cautious steps to cut their budget is great news for Infosys.

What is Infosys Vanguard Deal?

  • The Vanguard Group is an American Company with $6.2 trillion+ in assets under management. It is the 2nd largest provider of mutual funds and ETF in the world.
  • Infosys will take over the operations of Vanguard’s direct contribution (DC) business and recordkeeping business.
  • This deal will transform the Vanguard’s business using cloud and artificial intelligence and Digital First agenda.

10 Key details from Billion-Dollar Infosys Vanguard Deal:

  1. TCS, Accenture, and Wipro were also in the race for this deal; however, Infosys won this deal with a massive battle with Wipro Technologies in the last round.
  2. According to Martha King, Managing Director of Vanguard, Vanguard’s current system and process are decade old and runs on the Mainframe system; Vanguard is taking a bold step to align its business with newer technologies.
  3. This Digital Transformation project work can go up to 10 years, including design, development, deployment, and support, with the contract value growing over $2 Billion.
  4. Infosys will start this project with 300-400 employees and eventually increase to 3,000-4000 employees; Infosys has a plan to set up the facility in Electronics City in Bengaluru to service this deal.
  5. This deal will perhaps make it the biggest deal Infosys has ever signed.
  6. Infosys has an outstanding record serving 50% of the top 10 retirement services companies in the US.
  7. On an interesting note, Vanguard holds a nearly 3% stake in Infosys. 
  8. Infosys will develop cloud and artificial intelligence-based capabilities for Vanguard.
  9. Infosys will take over 1,300 American employees of the US investment management firm on its payrolls during the execution of this project.
  10. As reported by Times of India, Mohit Joshi(Infosys President, and BFSI head), Dennis Gada(BFS Business Head in North America), Ravi Kumar(President & Delivery Head), Nilanjay Roy(CFO), Anant R Adya(cloud & infrastructure business head ), and Nageswar Cherukupalli(BFS sales vice-president) are the key people behind this winning deal.

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