On behalf of Voya Financial Inc. and affiliated entities, Voya Services Co. entered into a master agreement for outsourced services with Cognizant Technology Solutions Corp. subsidiary Cognizant Worldwide Ltd.
Under the agreement, Cognizant will provide Voya Financial and its affiliated entities with information technology services like application development and maintenance as well as infrastructure management and support for servers, storage and network devices. Cognizant will also offer certain computing assets like server and network hardware. Voya Financial and its affiliated entities will still be responsible for their technology architecture, security strategy, program governance and regulatory oversight responsibilities.
Some employees of Voya Financial and its affiliated entities may move to Cognizant and some current positions may be eliminated. The services will be provided on the facilities of the companies inside and outside of the U.S.
Voya Services will pay Cognizant with a combination of fixed and variable fees. The variable fees will fluctuate based on the need of Voya Financial and its affiliated entities for the services and the volume of assets being utilized. Based on current projections, Voya Services expects to pay Cognizant around $400 million, including for transition services.
In connection with the agreement, Voya Financial expects to incur restructuring charges of between $40 million and $45 million in the third quarter. That includes asset impairment charges of between $10 million and $20 million. Additional restructuring charges are expected in future periods.