Vanguard is shifting about 1,300 positions supporting its full-service recordkeeping client administration, operations and technology functions to outsourcing partner Infosys as part of a new strategic partnership between the companies that was announced Tuesday.
As part of the deal, terms of which were not disclosed, Martha King, managing director of Vanguard Institutional Investor Group, will transition to Infosys to head the firm’s Mid-Atlantic Retirement Services Center of Excellence and serve as its chief client officer.
The initiative is part of Vanguard’s “ongoing strategy to enhance and evolve its full-service” defined contribution business, the firm said in the announcement. The new strategic partnership will “deliver a technology-driven approach to plan administration and fundamentally reshape the corporate retirement plan experience for its sponsors and participants,” it said.
Vanguard had about 17,600 employees as of Jan. 31.
Vanguard “selected Infosys after a thoughtful and extensive search to identify a partner with client-centric values, and an equally strong focus on its employees,” Vanguard spokeswoman Emily Farrell told ThinkAdvisor on Wednesday. “This partnership enables us to best serve our clients’ interests and provide meaningful opportunities for transferring crew.”
The impacted employees currently work within Vanguard’s Institutional and Information Technology divisions, Farrell pointed out. “In addition to serving corporate retirement plans (both as a full service and investment-only provider), our Institutional Investor Group works with other organizations including endowments and foundations,” she noted.
The announcement “pertains only to our full service defined contribution recordkeeping service,” she stressed, adding: “Vanguard will continue to serve as a sole recordkeeper for those defined contribution clients. We will continue to serve plans, sponsors, and participants, including providing retirement thought leadership, client service, and industry leading advice and investment management.”
John James, head of human resources at Vanguard, “will rotate to lead” Vanguard Institutional Investor Group, she added.