Capco Sets Major Expansion Plan It seems an odd time for a small financial services firm to be rolling out a major expansion in North America. Not so, says Tom McKelvey, global COO and leader of the North American practice at Capco. The firm plans to add some 40 partners and 500 consultants over the next year, and its recently added several ex-BearingPoint employees. McKelvey sat down with Consulting to discuss it.

Consulting: What are you seeing that tells you this is the right time for a North America expansion?

McKelvey: I think three things: One is the degree change that's going on in the industry. The level of issue that's in play right now absolutely will change the landscape of the financial services industry for the next quarter century, if not longer. These are robust changes that clients are thinking through. The second would be related to the first: Memory-making consulting is done in challenging times. Third, we see an opportunity. Clients are becoming more sophisticated, and we've heard some critique from clients about what they're getting from the traditional model. So, we've moved to a model that is about experience.

Consulting: Are you seeing positive signs in the financial services marketplace itself?

McKelvey: Things have stabilized a little bit, and that gives us the confidence that now is the right time. Bank earning are up substantially in the last quarter, now that's off a low base, so challenges remain. I think we're looking at very, very modest growth for the next year or so, at least. I actually hope the market doesn't improve a great deal over the coming months. I think we could take more share—and more good share—in a market that is sideways at best, something in the low single-digit growth. Once we're through our growth as a firm, we'll be happy to see a more worthwhile market.

Capco Sets Major Expansion Plan

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