McCarthy has made an impressive start to his reign at Ipswich having inherited a side that was without a win in 12 games and bottom of the table at the start of November.
A subsequent run of three wins in six games has lifted Ipswich out of the bottom three and McCarthy says he knew when taking the job that he was capable of turning the club around.
If Ipswich's Championship status is secured for another season then the former Wolves, Sunderland and Ireland manager believes brighter times are ahead for the club.
"Having spoken to everyone, the club is always spoken about in glowing terms - and the players, and the fans and everything else,” McCarthy told Yahoo!-Eurosport.
"And I have found that out myself already in the three weeks I have been here. Of course the team is struggling - if it wasn't they wouldn't have had a change of manager.
"I looked at all of that. 'Could I turn it around and keep the club up?' Yes, I believe I can.
"And I think it is then a good opportunity to build something, once we achieve our first objective, which is staying the Championship."
In our full-length interview, McCarthy also discusses the strength of the Championship and how best to raise morale in a struggling side.
Mick McCarthy was speaking to Yahoo!'s 'The Dugout' through its partnership with the League Managers Association