In one of the biggest deals inked, Bengaluru-based IT bellwether Infosys has bagged a multi-year investment from US-based Vanguard. The deal is worth a whopping $1.5 billion, making it the biggest deal Infosys has ever signed.
Quoting sources, the Times of India said the scope of the work could be extended to ten years, with the contract value rising to over $2 billion. ToI said Infosys declined to comment on the size of the deal, but such billion-dollar deals are rare for Indian IT sector.
Infosys reportedly won the deal in a hotly contested battle with Wipro in the final lap. Other serious contenders in the race included TCS and Accenture.
Infosys has reportedly set up a 3,000-seater facility in Electronics City in Bengaluru to service the deal. The company will initially have 300-400 people working out of the facility and it will ramp up gradually, based on the release timeline, sources were quoted.
The deal combines BPM services and digital transformation work to take Vanguard’s recordkeeping services onto a cloud-based platform.
Vanguard holds nearly 3% stake in Infosys through the funds it manages. Vanguard manages more than $1.3 trillion in DC (defined-contribution) assets – plans where employers and employees make regular contributions to secure the latter’s retirement days.
Infosys plans to streamline transaction processing leveraging robotic process automation, improve outcomes through omnichannel interaction, reimagine digital experiences, and provide real-time data and insights through AI-enabled analytics and reporting, ToI said, adding that the full release of the platform is expected in 2021.
Last year, Infosys’s Verizon contract size grew to over $1 billion and the client is said to have forwarded good references. Under CEO Salil Parekh, the company also has done major asset/people takeover deals, including a recent one with ABN AMRO, ToI said..