MC EXCLUSIVE Vanguard reverse transitions part of Infosys’ largest outsourcing deal

Infosys

• Vanguard absorbs Infosys employees as it shifts work in-house
• 248 Infosys BPM staff in Pennsylvania affected by transition
• The current move represents a partial rollback of that engagement

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US asset manager Vanguard has started absorbing employees from Infosys as it shifts work in-house and strengthens its internal technology capabilities.

The deal, signed in 2020, was widely seen as one of the largest deals for Infosys at the time in the financial services sector.

A filing with the Pennsylvania Department of Labor & Industry shows that 248 employees at Infosys BPM in Chesterbrook, Pennsylvania, are expected to be affected, with the process scheduled to begin on March 29, 2026 and continue through September 30, 2026.

However, people familiar with the matter said the development is part of a reverse transition of services, under which Vanguard is bringing back certain functions that were earlier handled by Infosys as part of the partnership between the two companies.

A majority of those employees have already received offers from Vanguard as the asset manager takes back part of the operations.

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Vanguard-Infosys BPM partnership

The development comes nearly six years after Vanguard and Infosys announced a strategic partnership in 2020 under which the Indian IT services firm assumed day-to-day operations supporting Vanguard’s defined contribution recordkeeping business, including software platforms, administration, and associated processes.

As part of the arrangement, around 1,300 Vanguard roles supporting administration and technology functions transitioned to Infosys, according to the companies’ announcement at the time.

The current move represents a partial rollback of that engagement, with certain client services functions being brought back within Vanguard.

“In outsourcing deals, the vendor takes over employees with the idea of optimising operations and redeploying them across projects. But with AI improving productivity, companies increasingly believe they won’t need that many people,” Pareekh Jain, Founder of Pareekh Consulting and EIIRTrends told Moneycontrol.

Infosys and Vanguard did not immediately respond to queries seeking comment.

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The 2020 Vanguard-Infosys Partnership

The July 2020 Vanguard and Infosys partnership was aimed at transforming the asset manager’s defined contribution recordkeeping business through a technology-led approach to plan administration. Under the arrangement, Infosys took over day-to-day operations supporting the business, including software platforms, administration, and associated processes.

Employees who transitioned to Infosys were offered comparable positions at the IT services firm near Vanguard’s offices in Malvern, Pennsylvania, Charlotte, North Carolina, and Scottsdale, Arizona, according to a press release issued at the time.

The partnership also focused on building a cloud-based recordkeeping platform and deploying digital technologies to enhance the retirement plan experience for sponsors and participants. At the time, Infosys said the engagement would help modernise Vanguard’s retirement services operations through advanced analytics and digital capabilities.

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