Capgemini sharpens its tip of the spear with another BFSI consultancy acquisition

Recent HFS research found that capital markets firms are prioritizing using data as an asset and digital modernization. Modernizing creaky innards and figuring out new monetization approaches while navigating looming regulatory change like T+1 should have capital markets firms on the prowl for strategic services partners to help advise, implement, and manage needed change. Some services firms are responding by amping their domain consultancy capabilities as a tip-of-the-spear pathway to ongoing transformation engagements. The latest example is Capgemini, making its second consulting-focused acquisition in the capital markets and broader banking, financial services, and insurance (BFSI) domain this year with its acquisition of Quorsus. Capital markets enterprises need to keep a fine eye tuned to services partners that can help them strategize as well as execute and manage transformative change.

Quorsus will join Chappuis Halder as part of Invent

In October, Capgemini announced its intention to acquire Quorsus. Founded in 2019, Quorsus is headquartered in London, UK, with a team in New York. It specializes in consultancy services to financial institutions in post-trade technologies, operations, regulatory solutions, and related market infrastructure. HFS estimates the Quorsus team numbers just less than 100 employees, with the resources supporting consulting and advisory projects and some architecture and design work. In our conversations with Capgemini leadership, they emphasized that Quorsus is not an implementation company. Quorsus will be rolled into Capgemini Invent, the Group’s “digital innovation, consulting, and transformation brand.” Its acquisition of BFSI-focused consultancy Chappuis Halder earlier this year was also rolled into Invent.

Tuck-in acquisitions pave the road to swift value for enterprises

After a few long years of digesting its mega Altran acquisition, Capgemini is taking smaller bites to buttress and build its BFSI capabilities. Its tuck-in acquisition of Chappuis Halder and now Quorsus are both relatively quick transactions built on engagement with mutual clients. HFS expects Quorsus to close fast and move swiftly to deliver value to capital markets clients.

BFSI is one of Capgemini’s stated priority industries. HFS regards the Group’s focus on consulting-oriented acquisitions as continued investment in enhancing the front end of its end-to-end consult-design-engineer-implement-build-run services potential. Domain-based consultancy is a powerful entry point for modernization-starved capital markets firms. The ultimate objective for Capgemini, though, will be to leverage its broad arsenal of domain and horizontal capabilities to deliver on the vast transformation needs across BFSI, especially in less modernized segments such as wealth and asset management, asset servicing and custody, investment banking, and market infrastructure. Enterprise clients, in turn, need to consider their most optimal path to results.

The Bottom Line: Capital markets enterprises can leverage domain consulting expertise as they determine their modernization path forward. End-to-end capabilities may provide the fastest route to results.

Capgemini’s acquisition of consultancy services firm Quorsus will give its existing clients access to expert strategic advice on regulatory requirements, market infrastructure, and securities processing for efficient operations across the trading lifecycle. The Chappuis Halder acquisition includes access to experienced financial consultants across geographies, with experience in hot areas such as sustainability services and data-driven transformation and areas of perpetual requirement like regulatory compliance and cybersecurity. Both acquisitions affirm Capgemini’s focus on helping BFSI clients start their transformation journeys. Enterprises need to ensure they don’t get stranded at planning. Start with the outcome in mind and be clear about the value you require. Service providers with end-to-end capabilities may offer the most streamlined path to value.