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:
- 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.
- 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.
- 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.
- 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.
- This deal will perhaps make it the biggest deal Infosys has ever signed.
- Infosys has an outstanding record serving 50% of the top 10 retirement services companies in the US.
- On an interesting note, Vanguard holds a nearly 3% stake in Infosys.
- Infosys will develop cloud and artificial intelligence-based capabilities for Vanguard.
- Infosys will take over 1,300 American employees of the US investment management firm on its payrolls during the execution of this project.
- 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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