Capgemini invests in end-to-end BFSI transformation capabilities for its clients

The Situation: Global services powerhouse Capgemini has the makings of a preferred end-to-end transformation partner for its clients. Its capabilities span consult, design, engineer, implement, build, and run phases. It has prioritized going to market targeting domains like “cloud” and “customer first,” creating a siloed approach to serving clients. Its recent acquisition of small management consultant firm Chappuis Halder is a critical investment that adds consulting capabilities and revitalizes its banking, financial services, and insurance (BFSI) capabilities, which will benefit its clients by returning the focus to transformation propositions.

Capgemini scoops up Chappuis Halder

On May 16, 2022, Capgemini announced a share purchase agreement to acquire Chappuis Halder, a management consulting player in the financial services arena with specific depth in the corporate investment banking and wealth management subsectors. Headquartered in Luxembourg with offices spread across North America, Europe, and Southeast Asia, Chappuis’ 150-plus-strong team is a solid addition to Capgemini’s consulting capabilities primarily in the banking and financial services space, offering clients a strong and proven re-engineering-cum-transformation offering.

Chappuis will become part of Capgemini Invent, the group’s digital innovation, consulting, and transformation arm established in 2018 from Capgemini Consulting and various digital and creative acquisitions. Capgemini has continued to add to Invent through M&A, but this is the first solid capability augmentation for its financial services clients. Chappuis brings a much-sought-after, talented workforce and a client roster that includes almost the entire Swiss private banking industry and notable players in the insurance and banking industry across Europe.

Renewed transformation focus for financial services clients

Capgemini has spent the last few years investing in domain capabilities, emphasizing engineering and manufacturing, with Altran as the centerpiece acquisition, creating Capgemini Engineering. This investment tipped the revenue-production balance from BFSI as the major contributor toward manufacturing. The group has made limited investments in financial services M&A since iGate in 2015, at which time the acquisition tipped the revenue-production balance from the public sector to BFSI. The financial services landscape—from investment banking to private banking to insurance—couldn’t be in a more challenging operating environment in the post-COIVD world. With a 2022 revenue growth target of 8% to 10% at constant currency, this renewed focus on the financial services capabilities will make that journey easier.

Chappuis’ expertise includes formal practices focused on business development and transformation; finance, risk and compliance, inclusive of environmental, social, and governance (ESG) and climate risk management; data, tech, and cyber security; and two centers of expertise focused on global research and analytics. When combined with the might of Capgemini’s consulting heritage, most of these capabilities can help power the top line for its financial services clients.

Whether it’s areas like transformation and organization of the finance function, including design of target business models and implementation management, or the post-COVID reality check of ESG, which shapes new disclosure norms and contributes to increased investor focus and revised policy frameworks across sectors and geographies, all these capabilities have ready takers across the BFSI landscape globally.

The Bottom Line: In the post-COVID world, most financial services players are looking to transform their offerings and processes. Capgemini’s Chappuis Halder acquisition provides a strong, transformation-focused offering.

Management consulting and strategy work is often the impetus and guiding force that sets clients on their transformation journeys. In a COVID-ravaged world, where most businesses have taken a hit, financial services clients have had an especially tough road to travel. The impetus for digital and transformed offerings was natural.

The benefits to Capgemini’s prospective and existing clients include access to talented and experienced consultants across geographies, with extensive financial services experience in hot areas such as sustainability services and data-driven transformation and in areas of perpetual requirement like regulatory compliance and cybersecurity.

The capabilities can certainly benefit Capgemini’s clients, and they signal a willingness to complement its heavy industry-specific investments in manufacturing with some much-needed love for its other critical industry tower, BFSI.