Vanguard Group, the Malvern, Pa.-based investment giant that employs more than 12,000 in Chester County, says it will transfer out of the company 1,300 workers who handle employers' 401k plans for 5 million working and retired Americans.
The staffers will start working later this year for a contractor, a new Malvern-based unit of Infosys, the India-based technology outsourcing giant.
The workers' Vanguard boss, Martha King, managing director of Vanguard Institutional Investor Group for the past five years, will leave the company with her staffers and become one of their bosses at Infosys. She promised "a seamless transition."
The switch includes record-keeping, client administration, operations and technology workers at Vanguard's Malvern headquarters and its smaller operations centers in North Carolina and Arizona.
Employees will keep their same pay and benefits and work at existing Infosys offices nearby, for the first year.
Infosys' plan to open a regional headquarters for its financial industry clients should "create significant long-term employment opportunities in the vicinity" and an "ongoing commitment" by Infosys to expand in the Philadelphia area, said Vanguard spokeswoman Emily Farrell.
King will become Chief Client Officer for Infosys' new Mid-Atlantic Center of Excellence, serving Vanguard as its "anchor client" and adding other business from its rivals.
Infosys President Mohit Joshi says half of the 20 largest U.S. money managers already use its services, and he hopes to win more.
"Our platform will create a new standard for the industry," and "drastically improve the retirement savings experience," promised Joshi in a statement.
King, a graduate of Bloomsburg University, will be replaced as boss of Vanguard's institutional investor group by John James, previously Vanguard's human-resources chief. He in turn will be replaced at HR by Vanguard veteran Lauren Valente.