Infosys INFY recently collaborated with asset management company, Vanguard, to provide its transformative digital technologies to help the latter to develop improved administrative and retirement blueprint for its 1,500 sponsors and 5 million participants.
Infosys will essentially support the digital transformation of Vanguard’s defined contribution (DC) business, which includes the DC recordkeeping business. The DC recordkeeping business comprises software platforms, administration and associated processes, with a cloud-based recordkeeping platform.
AI-backed analytics capabilities, transparency of participant behavior and strong operational support will be included in planned enhancements for sponsors.
The partnership is a great exposure for Infosys, as approximately 1,300 roles in Vanguard associated with full-service recordkeeping client administration, operations and technology will be shifted to Infosys. Notably, Vanguard employees in these roles will be placed with Infosys with the same salary.
Infosys has rich experience in the retirement services space and currently serves 50% of the top 20 retirement service firms in the United States. Its services include providing technology-driven risk management, better participant experience and retirement plans. The company also offers end-to-end insurance and retirement business solutions across life insurance and annuity services, producer services, retirement services, employer-sponsored services, and functional BPO services. These credentials prompted Vanguard to choose Infosys as their technology partner for DC transformation.
Infosys Limited Price and Consensus
Digital Transformation: A Key Driver
Infosys has been attempting to reinforce its digital transformation capabilities for expanding and solidifying its position in the highly competitive environment.
The company is enabling its clients across more than 45 countries to create and execute strategies for their digital transformation.
We note that Infosys is looking to build a strong team of digital specialists in order to cater to clients across all verticals whose key theme remains digital transformation. Reportedly, Infosys has built solutions, driven by AI and machine learning, to digitize the data supply chain.
Infosys has been strengthening its core competencies by pursuing collaborations and acquisitions. The company’s alliance strategy is targeted at teaming up with leading technology providers, which allows it to cash in on the emerging technologies in a mutually advantageous and cost-competitive manner.
In order to boost digital, cloud, legacy modernization and automation businesses, Infosys cemented strategic tie-ups with Google, Adobe, Microsoft, Amazon Web Services and salesforce.com.
We believe that such efforts in the digital-transformation business will boost the company’s position to compete with its rivals like Accenture ACN and Cognizant CTSH.
Zacks Rank & A Key Pick
Infosys currently has a Zacks Rank #3 (Hold).
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