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Vanguard goes to India

Through the partnership, Infosys will assume day-to-day operations supporting Vanguard's DC recordkeeping business, including software platforms, administration, and associated processes. Plan sponsors will continue to be served by Vanguard's relationship management teams, strategic plan design, and communication experts. Additionally, Vanguard will oversee all aspects of its investment management and guidance for both sponsors and participants, including ongoing development of its accessible, holistic, and personal advice services. Participant phone calls will be serviced by both Vanguard and Infosys."

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Re: Vanguard goes to India

Infosys/INFY is India-based multinational. See related news release on Vanguard outsourcing its DC [401k, 403b, 457] retirement servicing business to INFY.   https://finance.yahoo.com/news/vanguard-infosys-announce-strategic-partnership-160600783.html

".....Approximately 1,300 Vanguard roles currently supporting the full-service recordkeeping client administration, operations, and technology functions will transition to Infosys. All Vanguard employees currently performing these roles will be offered comparable positions at Infosys in close proximity to Vanguard's offices in Malvern, PA, Charlotte, NC, and Scottsdale, AZ. Transitioning employees will receive the same salary, comparable benefits for a transition period of 12 months, plus meaningful incentive opportunities. Infosys is dedicated to this business and the transition offers prospects for long-term career growth and development.....Ms. King, currently head of Vanguard Institutional Investor Group, will also transition to Infosys to head the firm's Mid-Atlantic Retirement Services Center of Excellence and serve as the firm's Chief Client Officer. The transitioning Vanguard crew will report up through Ms. King and Mr. Joshi.....Infosys currently serves half of the top 20 retirement service firms in the U.S....."

YBB
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Re: Vanguard goes to India

Infosys is a reliable company, but I would be concerned that off shoring this stuff puts a lot of peoples' confidential financial records out in cyberspace.

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Re: Vanguard goes to India

Infosys has a big preesence in the USA. I assume that they have a big data center in Indiana. I am sure that some data stuff may be done in India also. No telling. I wouldn't be concerned because it is a global operation. Everything is global now. Stop thinking the old way. Data leak can occur even if it is Capital One located in Virginia and it did. Yahoo could not stop either.

Did you know that an employee of my university (Cookeville, TN) sold all our SS numbers to a company? It happened a year after my retirement but the list had my SS number also. University could not do anything about it except that "he was allowed to retire." That was the punishmnet.

ADD: I know that Infosys has hired several US graduates. Some of these guys/girls are working in Mysore.

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Re: Vanguard goes to India


@yogibearbull wrote:

All Vanguard employees currently performing these roles will be offered comparable positions at Infosys in close proximity to Vanguard's offices in Malvern, PA, Charlotte, NC, and Scottsdale, AZ. Transitioning employees will receive the same salary, comparable benefits for a transition period of 12 months, plus meaningful incentive opportunities. 


I feel sorry for the employees who will possibly need to relocate or quit their job. “Close proximity” does not mean close to where the current office is located. 

After 12 months, the new company will go through a “lean” process and will do staff and salary reductions for the transitioned employees.

The US costumer service reps will be RIFF’ed in favor for the cheaper Indian based CSR’s.

If you thought Vanguard’s reps sucked now just wait until it goes offshore.

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Re: Vanguard goes to India


@BigTom wrote:

@yogibearbull wrote:

All Vanguard employees currently performing these roles will be offered comparable positions at Infosys in close proximity to Vanguard's offices in Malvern, PA, Charlotte, NC, and Scottsdale, AZ. Transitioning employees will receive the same salary, comparable benefits for a transition period of 12 months, plus meaningful incentive opportunities. 


I feel sorry for the employees who will possibly need to relocate or quit their job. “Close proximity” does not mean close to where the current office is located. 

After 12 months, the new company will go through a “lean” process and will do staff and salary reductions for the transitioned employees.

The US costumer service reps will be RIFF’ed in favor for the cheaper Indian based CSR’s.

If you thought Vanguard’s reps sucked now just wait until it goes offshore.


Yes.

I have been to Vanguard Hdqtrs...huge new building now open.  It is located in the general area of a train station, that goes to central city Philadelphia.

I would prefer my dollar spent on Admin stuff, go to someone in USA/center city Phila...give them some jobs!

Disclosure: my son in law is of India descent...so nothing against India...we simply need more jobs here...as in: (Apple's) Tim Cook, why can't you build some iphones in USA??  If you say it would cost $25 more, then sell those phones in the Hamptons, or San Francisco, or down  here where I live, in the Palm Beaches,FL...and up the price.

R48

 

 

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Re: Vanguard goes to India

Outsourcing doesn't equate to offshoring.

India is still in a stricter partial lock-down and that has left some US companies with back-office operations in India scrambling. Timing of Vanguard & Infosys announcement indicates that there won't be any offshoring anytime soon, if at all.

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Re: Vanguard goes to India


@yogibearbull wrote:

Outsourcing doesn't equate to offshoring.

India is still in a stricter partial lock-down and that has left some US companies with back-office operations in India scrambling. Timing of Vanguard & Infosys announcement indicates that there won't be any offshoring anytime soon, if at all.


They are all back in "Complete Lockdown" again. All major towns have empty streets.

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Re: Vanguard goes to India

Indeed, it is a vicious circle.

People follow money, and money follows to people who can be hired at a cheaper price - sometimes non-avilabilty of people like me when I was hired.

The university president (a Civil  Eng. Ph. D. from U of IL.) here convinced me why I should move to Tenn. Tech. They needed a person like me because they needed to go through ABET evaluation that year, and a part-time person with a law degeree was teaching only the basic course in the area here. That would be a neagtive grade. I can go on with my experience with many former presidents and deans (RIP). I was hired in a similar situation in the previous school also. Every time, when I moved, I had a sudden pay increase of 25-30%. When I moved to Tenn. Tech., thanks to Lamar Alexander, 100% of the retirement benefit was also paid by the school and 80% BCBS cost was also paid by the school.

In conclusion, the bottom line is this: The mobilty and communication has improved so much in the last 20 years, and all new graduates have to compete globaly as did my own son who does not know much about India but he knows he has to compete with those guys. Even last year, he had to move to another job although he is in mid-forties, and he had to compete with guys from India also. So, that is the way life is.

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Re: Vanguard goes to India


@yogibearbull wrote:

Outsourcing doesn't equate to offshoring.

India is still in a stricter partial lock-down and that has left some US companies with back-office operations in India scrambling. Timing of Vanguard & Infosys announcement indicates that there won't be any offshoring anytime soon, if at all.


Infosys, Cognizant, Tata and CapGemini are the major players in offshoring company resources & technology. 

The India lockdown has almost had zero impact at the company I work for. Their offshore staff telecommutes from home or from a remote location just like our onsite staff does here in the US.

The only major impact to the on-site/offshore contractor model has been the new limitations on the number of green cards which get (or don’t get) renewed every year. 

The timing of the offshoring isn’t necessarily  dependent on the pandemic. It’s based on how fast the US employees can get the Infosys staff up to speed on Vanguard systems. That’s why there is only a year guarantee for the US employees. 

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Re: Vanguard goes to India

As this data including personal information is outsourced, what laws control it once it leaves US borders?  All of these companies have disaster recovery plans.  Is the backup housed in the US?  And if not how would any criminal penalties be invoked overseas?  My cousin does some business in India.  He said the justice system there makes ours seem like its on speed dial.  

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Re: Vanguard goes to India


@hku wrote:

Through the partnership, Infosys will assume day-to-day operations supporting Vanguard's DC recordkeeping business, including software platforms, administration, and associated processes. Plan sponsors will continue to be served by Vanguard's relationship management teams, strategic plan design, and communication experts. Additionally, Vanguard will oversee all aspects of its investment management and guidance for both sponsors and participants, including ongoing development of its accessible, holistic, and personal advice services. Participant phone calls will be serviced by both Vanguard and Infosys."


Sad news for US employees. This happened to Anthem recently where 600+ Jobs were moved to India. Some local employees are hired for a year. I doubt  they will keep these employees after a year. Working with Indian folks is a challenge, very hard to understand. I don't believe there is much  control on privacy. We get multiple scam calls from India everyday, how do you think our cell phones and other information got to Indian scammers?  We need to keep these tech jobs in US !!!  If it gets bad at Vanguard that customer service calls start going to India, it will be time for me to move my Vanguard account some place else.

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Re: Vanguard goes to India


@Joe3100 wrote:


Sad news for US employees. This happened to Anthem recently where 600+ Jobs were moved to India. Some local employees are hired for a year. I doubt  they will keep these employees after a year. Working with Indian folks is a challenge, very hard to understand. I don't believe there is much  control on privacy. We get multiple scam calls from India everyday, how do you think our cell phones and other information got to Indian scammers? 


I do not receive any call from India. I do not use whatsapp. Use some call blockers - like Hiya or True caller. I do not get any call from any scammer. If I do, I check the caller and block them.

"We need to keep these tech jobs in US !!! "

You can shout all you want. It ain't to happen.

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Re: Vanguard goes to India


@ECEPROF wrote:

@Joe3100 wrote:


Sad news for US employees. This happened to Anthem recently where 600+ Jobs were moved to India. Some local employees are hired for a year. I doubt  they will keep these employees after a year. Working with Indian folks is a challenge, very hard to understand. I don't believe there is much  control on privacy. We get multiple scam calls from India everyday, how do you think our cell phones and other information got to Indian scammers? 


I do not receive any call from India. I do not use whatsapp. Use some call blockers - like Hiya or True caller. I do not get any call from any scammer. If I do, I check the caller and block them.

"We need to keep these tech jobs in US !!! "

You can shout all you want. It ain't to happen.


What I can do as an individual, is to move my Business where companies value US employees. You never know what will happen in future so never say never. India is in tit bits with China and Pakistan and if nuclear war starts India may be history. Also you cannot block calls as next call will come from a different number they keep on using different phone numbers. 

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Re: Vanguard goes to India

Jobs for Americans since they can't compete with low cost countries - service jobs, police, teaching, armed forces, govt jobs etc. Good paying jobs - all are at risk.

Only jobs category - health care related - which are at present mostly immune to outsourcing.

I own American companies who have outsourced services and making lots of money - some are flowing to my portfolio.

 

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Re: Vanguard goes to India

I used to shop around for the highest paying savings accounts, but then I realized that every time I changed savings accounts I had to give another company my private information.

American companies are now in the process of doing the same thing. They’re shopping around for the low price bidder on who can manage their software. The only difference being that they are risking their customers private information. If they change companies often enough pretty soon everyone everywhere will have our private confidential information.

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Re: Vanguard goes to India

Data breach can occur anywhere. It is not a something you can assign to a specific country. The reason they occur is because the data is in the cloud. Can you avoid this? No. We all depend on the cloud.

Here is an example of the effect of data breach. People steel the data anywhere and everywhere because it involves money. Some people sell the data for money as I posted earler - an employee of the our univesity selling our SS numbers. He is from Rickman, TN (population - 200).

"According to Hogan, more than 47,000 false claims were made using stolen identities and personal information acquired from previous data breaches. The governor said Maryland claimants’ personal information was not compromised during the scheme."

https://thehill.com/homenews/state-watch/507541-maryland-officials-discover-501-million-fraud-scheme

Here is a story about Cyber attacks. It is all about money.

https://www.cnn.com/2020/05/19/tech/data-breach-report-verizon/index.html

Another data breach

https://thehill.com/policy/technology/507542-twitter-accounts-of-bill-gates-elon-musk-seemingly-hack...

Again, these types of bitcoin scams usually start from Eatern Europe. I do not know wherefrom these ones came from. Everybody wants to make money easy way.

 

 

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Re: Vanguard goes to India

About 10% of my assets are in VG Roth IRAs for there are no custodial fees and the assets are mostly stocks for which I pay 0 commissions. I rarely talk to a VG rep and all my reports are provided on line. Last time I spoke to a rep was to establish Stock brokerage IRAs to replace the mutual fund accounts that generated fees to VG. Don’t  see how VG makes any money off this 6 figure account other than by leverage. Since VG is owned by its fund holders many of whom pay 0 fees, who benefits from the cost reductions resulting from US workers being replaced by cheaper foreign workers unless VG is planning to challenge Blackrock for the title of largest fund company with the lowest costs. 

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Re: Vanguard goes to India

Yogi's post at the bottom of this thread and the OP are very clear the services that are outsourced to Infosys are only related to employer based retirement plans and not related to individual accounts.  Of the big fund companies, Vanguard is more known for having sub advisers on its own funds.  So, outsourcing back office functions is not a head turner for me.  If the outsourcing of administrative or other back office functions does not go well, Vanguard will hear from large US companies.  

In the past years, I was a critic of Vanguard customer service.   This year, amazingly, each time I posted a question in the secure message center expecting somebody at Vanguard would write a reply, I had a Vanguard rep call me to give me the answer and also ask me how else they could help.   Earlier this week, they called and left a voice mail in response to my post in the message center.  When I did not call them back for a couple of hours, they called again to give me the answer.  That is white glove service.  I have to pinch myself each time.  Service levels from other large brokerages where I have accounts have been very spotty this year because reps are working from home.  I would rather Vanguard keep up and improve their good service to individual account holders than worry about how employer plans may be effected by the outsourcing to Infosys.  

Plan sponsors can always voice their displeasure to Vanguard or switch to a different custodian / administrator if they do not like Infosys.

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Re: Vanguard goes to India

I just remembered something about InfoSys. Both InfoSys and TCS have big presence in many countries including US. Essentially, they are global companies, just like Microsoft, Google, Amazon, etc. But, the largest share holder of InfoSys is its founder/chairman Narayanamurthy. He is retired and living in Britain because his only daughter married a British guy of Indian origin. I do not know how it happened. proabably they met in the graduate school. Now, you should all know Narayanmurthy's son-in-law is the Chancellor of Exchequer (equivalent of the Finance secretary but more powerful because he is a cabinet member in a parliamentary system) of the British government. So, InfoSys has a lot of connections in the world.

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