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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                              ---------------------

                                    FORM 10-Q

(Mark One)

[X]  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15  (d)  OF  THE
     SECURITIES  EXCHANGE  ACT  OF  1934

For the quarterly period ended September 30, 2001.

                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
     SECURITIES  EXCHANGE  ACT  OF  1934

For the transition period from ____________ to ____________


                        COMMISSION FILE NUMBER: 00-24055

                            DA CONSULTING GROUP, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

                TEXAS                                76-0418488
    (STATE OR OTHER JURISDICTION OF     (I.R.S. EMPLOYER IDENTIFICATION NO.)
     INCORPORATION OR ORGANIZATION)

                           5847 SAN FELIPE, SUITE 1100
                              HOUSTON, TEXAS  77057
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (713) 361-3000


     Indicate  by  check  mark  whether the registrant (1) has filed all reports
required  to  be  filed by Section 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  12  months  (or  for  such shorter period that the
registrant  was required to file such reports), and (2) has been subject to such
filing  requirements  for  the  past  90  days.


                              YES  [X]     NO  [ ]

     NUMBER OF SHARES OUTSTANDING OF COMMON STOCK AS OF November 14, 2001 - -
                                    8,418,604
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<PAGE>
<TABLE>
<CAPTION>
                                    DA CONSULTING GROUP, INC.

                                              INDEX

                                              PART I

                                      FINANCIAL INFORMATION

                                                                                             PAGE NO.
                                                                                             --------
<S>                                                                                          <C>
Item 1.  Financial  Statements
         Condensed Consolidated Balance Sheets at September 30, 2001 (unaudited)
           and  December  31,  2000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   3

         Condensed  Consolidated Statements of Operations for the Three Months ended
           September  30,  2001  and  2000  (unaudited). . . . . . . . . . . . . . . . . . . .   4

         Condensed  Consolidated  Statements of Operations for the Nine Months ended
           September  30,  2001  and  2000  (unaudited). . . . . . . . . . . . . . . . . . . .   4

         Condensed  Consolidated  Statements  of  Cash  Flows  for  the Nine Months ended
           September  30,  2001  and  2000  (unaudited). . . . . . . . . . . . . . . . . . . .   5

         Notes  to  Unaudited  Condensed Consolidated Financial Statements . . . . . . . . . .   6

Item 2.  Management's  Discussion  and Analysis  of  Financial Condition
           and Results of  Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . .   9

Item 3.  Quantitative and Qualitative Disclosures About Market Risk. . . . . . . . . . . . . .  14


                                              PART II

                                        OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . . . . . . . . . . . . . .  14

Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15
</TABLE>


                                        2
<PAGE>
<TABLE>
<CAPTION>
                          PART I-FINANCIAL INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS

                                        DA CONSULTING GROUP, INC.

                                  CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (In thousands, except share amounts)


                                                                           SEPTEMBER 30,    DECEMBER 31,
                                                                               2001             2000
                                                                          ---------------  --------------
<S>                                                                       <C>              <C>
                               ASSETS                                       (Unaudited)
                               ------
Current Assets:
  Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . .  $          330   $         949
  Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . .           3,406           5,226
  Unbilled revenue . . . . . . . . . . . . . . . . . . . . . . . . . . .             400             206
  Deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . .             625             708
  Prepaid expenses and other current assets. . . . . . . . . . . . . . .             395             440
                                                                          ---------------  --------------
      Total current assets . . . . . . . . . . . . . . . . . . . . . . .           5,156           7,529
                                                                          ---------------  --------------
Property and equipment, net. . . . . . . . . . . . . . . . . . . . . . .           5,875           8,130
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             195             254
Deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . . .           5,923           8,647
Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . .             365             380
                                                                          ---------------  --------------
         Total assets. . . . . . . . . . . . . . . . . . . . . . . . . .  $       17,514   $      24,940
                                                                          ===============  ==============

                  LIABILITIES AND SHAREHOLDERS' EQUITY
                  ------------------------------------

Current Liabilities:
   Revolving line of credit. . . . . . . . . . . . . . . . . . . . . . .  $        1,093   $         154
   Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . .           1,957           1,840
   Accrued expenses. . . . . . . . . . . . . . . . . . . . . . . . . . .           3,512           6,655
                                                                          ---------------  --------------
      Total current liabilities. . . . . . . . . . . . . . . . . . . . .           6,562           8,649
                                                                          ---------------  --------------
Other liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . .             801               -
                                                                          ---------------  --------------
Commitments and contingencies

Shareholders' Equity:
  Preferred stock, $0.01 par value: 10,000,000 shares authorized . . . .               -               -
  Common stock, $0.01 par value: 40,000,000 shares authorized; 8,571,777
     shares issued; 8,418,604 shares outstanding . . . . . . . . . . . .              85              85
  Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . .          34,039          34,039
  Accumulated deficit. . . . . . . . . . . . . . . . . . . . . . . . . .         (20,938)        (15,082)
  Accumulated other comprehensive loss . . . . . . . . . . . . . . . . .          (1,513)         (1,229)
  Treasury stock, at cost: 153,173 shares. . . . . . . . . . . . . . . .          (1,522)         (1,522)
                                                                          ---------------  --------------
      Total shareholders' equity . . . . . . . . . . . . . . . . . . . .          10,151          16,291
                                                                          ---------------  --------------
          Total liabilities and shareholders' equity . . . . . . . . . .  $       17,514   $      24,940
                                                                          ===============  ==============
</TABLE>

The  accompanying  notes  are  an  integral  part  of the condensed consolidated
financial  statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>
                              DA CONSULTING GROUP, INC.

                   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (In thousands, except per share amounts)
                                     (Unaudited)


                                        THREE MONTHS ENDED      NINE MONTHS ENDED
                                           SEPTEMBER 30,          SEPTEMBER 30,
                                         2001        2000        2001        2000
                                      ----------  ----------  ----------  ----------
<S>                                   <C>         <C>         <C>         <C>
Revenue. . . . . . . . . . . . . . .  $   5,843   $   8,148   $  21,986   $  22,536
Cost of revenue. . . . . . . . . . .      3,332       4,224      12,897      15,413
                                      ----------  ----------  ----------  ----------

  Gross profit . . . . . . . . . . .      2,511       3,924       9,089       7,123


Selling and marketing expense. . . .        606       1,154       2,651       3,877
Development expense. . . . . . . . .         28         923         660       3,124
General and administrative expense .      2,222       3,739       8,745      14,262
Restructuring charge . . . . . . . .          -           -           -       3,354
                                      ----------  ----------  ----------  ----------
  Operating loss . . . . . . . . . .       (345)     (1,892)     (2,967)    (17,494)
                                      ----------  ----------  ----------  ----------
Interest income (expense), net . . .        (42)         15         (40)         50
Other income (expense), net. . . . .       (201)         43        (242)          4
                                      ----------  ----------  ----------  ----------

  Total other income (expense), net.       (243)         58        (282)         54
                                      ----------  ----------  ----------  ----------
  Loss before taxes. . . . . . . . .       (588)     (1,834)     (3,249)    (17,440)
Provision (benefit) for income taxes        (30)       (950)      2,607      (6,014)
                                      ----------  ----------  ----------  ----------

  Net loss . . . . . . . . . . . . .  $    (558)  $    (884)  $  (5,856)  $ (11,426)
                                      ==========  ==========  ==========  ==========

Basic loss per share . . . . . . . .  $   (0.07)  $   (0.14)  $   (0.70)  $   (1.78)
Weighted average shares outstanding.      8,419       6,419       8,419       6,419

Diluted loss per share . . . . . . .  $   (0.07)  $   (0.14)  $   (0.70)  $   (1.78)
Weighted average shares outstanding.      8,419       6,419       8,419       6,419
</TABLE>

     The accompanying notes are an integral part of the condensed consolidated
                              financial statements.


                                        4
<PAGE>
<TABLE>
<CAPTION>
                                         DA CONSULTING GROUP, INC.

                              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                              (In thousands)
                                                (Unaudited)


                                                                                      NINE MONTHS ENDED
                                                                                        SEPTEMBER 30,
                                                                                       2001        2000
                                                                                  -----------  -----------
<S>                                                                               <C>          <C>
Cash flows from operating activities:
  Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $   (5,856)  $  (11,426)
  Adjustments to reconcile net loss to net cash used in
   operating activities:
    Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . .       1,869        2,413
    Deferred income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . .       2,807       (5,722)
    Writedown of fixed assets and reserve for leasehold abandonment. . . . . . .         157        1,935
    Changes in operating assets and liabilities:
      Accounts receivable and unbilled revenue . . . . . . . . . . . . . . . . .       1,626        4,050
      Income tax receivable. . . . . . . . . . . . . . . . . . . . . . . . . . .           -        1,899
      Prepaid expenses and other current assets. . . . . . . . . . . . . . . . .          45           43
      Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          59         (133)
      Accounts payable, accrued expenses and other liabilities . . . . . . . . .      (2,225)      (1,174)
      Deferred income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           -          (65)
                                                                                  -----------  -----------
        Total adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . .       4,338        3,246
                                                                                  -----------  -----------

          Net cash used in operating activities. . . . . . . . . . . . . . . . .      (1,518)      (8,180)
                                                                                  -----------  -----------
Cash flows from investing activities:
  Proceeds from sale of property and equipment . . . . . . . . . . . . . . . . .         274          260
  Sales of short-term investments. . . . . . . . . . . . . . . . . . . . . . . .           -        2,389
  Purchases of property and equipment. . . . . . . . . . . . . . . . . . . . . .         (30)         (70)
                                                                                  -----------  -----------
          Net cash provided by investing activities. . . . . . . . . . . . . . .         244        2,579
                                                                                  -----------  -----------
Cash flows from financing activities:
  Proceeds from bridge loan. . . . . . . . . . . . . . . . . . . . . . . . . . .           -        2,000
  Proceeds from revolving line of credit . . . . . . . . . . . . . . . . . . . .         939        1,016
                                                                                  -----------  -----------
          Net cash provided by financing activities. . . . . . . . . . . . . . .         939        3,016
                                                                                  -----------  -----------
Effect of changes in foreign currency exchange rate on cash and cash equivalents        (284)        (495)
                                                                                  -----------  -----------

          Decrease in cash and cash equivalents. . . . . . . . . . . . . . . . .        (619)      (3,080)
Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . .         949        3,406
                                                                                  -----------  -----------
Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . .   $     330   $      326
                                                                                  ===========  ===========
Noncash activities:
  Other liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         801            -
</TABLE>

     The accompanying notes are an integral part of the condensed consolidated
                              financial statements.


                                        5
<PAGE>
                            DA CONSULTING GROUP, INC.

         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(1)  ORGANIZATION  AND  BUSINESS

     DA  Consulting Group, Inc. ("DACG(TM)") together with its subsidiaries, the
"Company,"  is  a  leading  international  provider  of  employee  education and
software  solutions  to  companies investing in business information technology.
Through  its  offices  in seven countries, DACG delivers customized services for
documentation  and  training necessary for implementation of extended enterprise
software  applications;  technical  and  non-technical  employee  education  and
continuous  learning  programs;  e-Learning  applications  such  as
computer-based-training and learning management systems; and consulting on human
resource  management,  change  management  and  change  communications.  The
consolidated  financial  statements include the accounts of DA Consulting Group,
Inc. and all majority-owned subsidiaries. Intercompany balances and transactions
have  been  eliminated  in  consolidation.

(2)  BASIS  OF  PRESENTATION

     The  unaudited  condensed consolidated financial statements included herein
have  been  prepared  by  the Company without an audit pursuant to the rules and
regulations  of  the Securities and Exchange Commission. Certain information and
footnote  disclosures  normally  included  in  financial  statements prepared in
accordance with accounting principles generally accepted in the United States of
America  have been condensed or omitted, pursuant to such rules and regulations.
The  unaudited  condensed  consolidated  financial  statements should be read in
conjunction  with  the  Company's consolidated financial statements for the year
ended  December  31, 2000, included in the Company's Annual Report on Form 10-K.

     The  unaudited condensed consolidated financial information included herein
reflects all adjustments, consisting only of normal recurring adjustments, which
are  necessary,  in  the  opinion  of  management for a fair presentation of the
Company's  financial  position,  results  of  operations  and cash flows for the
interim  periods  presented.

New  Accounting  Pronouncements

     The  Financial  Accounting  Standard  Board  recently  issued  Statement of
Financial  Accounting  Standards  No.  141  ("SFAS 141"), Business Combinations,
which  requires  that  all  business  combinations  be  accounted  for using the
purchase method.  In addition, this Statement requires that intangible assets be
recognized  as  assets  apart  from goodwill if certain criteria are met. As the
provisions of this Statement apply to all business combinations, management will
consider  the  impact  of  this  statement  for  future  combinations.

     The  Financial  Accounting  Standard  Board  recently  issued  Statement of
Financial  Accounting  Standards  No.  142  ("SFAS  142"),  Goodwill  and  Other
Intangible  Assets,  which established Standards for reporting acquired goodwill
and  other  intangible assets. This Statement accounts for goodwill based on the
reporting  units  of  the  combined  entity  into  which  an  acquired entity is
integrated.  In  accordance  with  the  Statement, goodwill and indefinite lived
intangible  assets will not be amortized, goodwill will be tested for impairment
at  least annually at the reporting unit level, intangible assets deemed to have
an  indefinite  life  will  be  tested for impairment at least annually, and the
amortization  period  of intangible assets with finite lives will not be limited
to  forty  years.  The  provisions  of this Statement are required to be applied
starting  with  fiscal years beginning after December 15, 2001.  The Company has
approximately  $365,000  of  goodwill included in its balance sheet at September
30, 2001. Goodwill amortization for the nine months ended September 30, 2001 was
approximately  $15,000  and is currently expected to approximate $20,000 for the
year  ended  December  31,  2001  before the provisions of SFAS 142 are applied.
Implementation  of  SFAS  142  by  the  Company may result in the elimination of
amortization  of  goodwill.

(3)  LIQUIDITY

     The Company believes its current cash balances, receivable-based financing,
revolving  line  of  credit  and  cash  provided  by  future  operations will be
sufficient to meet the Company's working capital and cash needs for at least the
next  12-month  period.  However, there can be no assurance that such sources of


                                        6
<PAGE>
funds  will  be  sufficient to meet these needs. The Company may seek additional
financing  through public or private placement of equity. The Company's need for
additional  financing  will  be  principally  dependent  on the degree of market
demand  for  the  Company's services. There can be no assurance that the Company
would  be  able  to  obtain additional financing on acceptable terms, if at all.

(4)  INCOME  TAXES

     At September 30, 2001, the Company had $6.5 million of deferred tax assets,
primarily  consisting of net operating loss carryforwards, net of a $4.0 million
valuation  allowance,  which  was  recorded at September 30, 2001. The valuation
reserve  is  made  up of $2.6 million in tax benefits recorded in the prior year
and $1.4 million in current year tax benefits.  In determining the amount of the
valuation  allowance,  the Company considered numerous factors, including, among
other  things, historical profitability, estimated future taxable income and the
volatility of earnings of the industry in which it operates. The primary factors
considered  in  evaluating  the  realizability of the deferred tax asset and the
level  of  valuation  allowance  were  the  continued  operating  losses for the
Americas  through  September  30,  2001,  the  Company's  projection  of  future
operating  results and the number of years it will take to recover the tax asset
in  a  difficult  market. The provision for income taxes of $2.6 million for the
nine  months  ended  September  30,  2001,  reflects  the  valuation  allowance.

     The  remaining  future  benefit  from  utilization  of  net  operating loss
carryforwards  could  be subject to limitations if significant ownership changes
occur  in the Company. Additionally, the Company's ability to realize the entire
benefit of its deferred tax asset requires the Company to achieve certain future
earnings levels prior to the expiration of its net operating loss carryforwards.
To  realize  the  $6.5 million of deferred tax assets in the future, the Company
would  need to earn about $17 million before the expiration of the net operating
loss  carryforwards. Further, the Company could be required to record additional
valuation  allowances  for a portion or all of its deferred tax assets if market
conditions deteriorate further and future earnings are below, or projected to be
below,  its current estimates. The Company will periodically review its deferred
tax  asset  to  determine  if  such  asset  is  realizable.

     The  effective  tax  rate for the three months ended September 30, 2001 and
2000  was  5.1%  and 51.8% respectively.  The decrease in the effective tax rate
resulted  primarily  due to the reserving of current period operating losses for
the  Americas  Division.  The effective rate for the nine months ended September
30,  2001  and  2000  was  80.2%  and  34.5%, respectively.  The increase in the
effective  tax  rate  resulted  primarily  due  to the reserving of prior period
operating  loss  tax  benefits  as  discussed  above.

(5)  DEBT

Revolving  Line  of  Credit

     In  March  2000,  the  Company  signed  a credit facility agreement with an
available  line of approximately $1.1 million based on eligible foreign accounts
receivable.  At  September 30, 2001, the Company had drawn the maximum available
against  the  line.  The  interest  rate  on  this  line  of credit was 6.75% at
September  30,  2001.

Accounts Receivable Financing

     In  March 2000, the Company signed an agreement with a bank, which provides
for  financing  of  eligible  U.S. accounts receivable under a purchase and sale
agreement.  The  maximum  funds available under the agreement is $5 million.  At
September  30,  2001,  the  Company  had  sold  $211,000  in accounts receivable
pursuant  to  this  agreement.

(6)  OTHER  CHARGES

     During the three month period ended March 31, 2000, the Company implemented
a  plan  to  address the dramatic decline in training and documentation activity
for  enterprise  resource  planning  implementations.  The  plan  consisted  of
regional  base  consolidations  and  downsizing  of  billable  and  non-billable
personnel.  Charges  included  the  costs  of  involuntary  employee termination
benefits,  write-down  of  certain  property  and  equipment,  and  reserves for
leasehold  abandonment.  The  reduction  in  workforce  consisted of 60 billable
consultants  and  44 non-billable administrative personnel. Substantially all of
the  employee  terminations were completed during the first quarter of 2000. The
Company  reserved approximately $1.5 million expense attributable to involuntary
employee termination benefits during the first quarter 2000 which has been paid.
In  addition,  the  Company  reserved  approximately $0.9 million related to the


                                        7
<PAGE>
abandonment  of  leases and approximately  $1.0 million related to the writedown
of leasehold improvements, furniture and equipment held by its Americas division
in  the  first  quarter  of  2000.  During  the  fourth  quarter of 2000, due to
weakening  in  the  real  estate market, the Company recorded an additional $1.3
million reserve for lease abandonment resulting in a total annual charge of $2.2
million.

      Due  to additional cost reductions, an estimated liability of $0.6 million
for  future  lease  payments  related  to  idle property was recorded during the
second  quarter  of  2001  and  included in general and administrative expenses.
During  2000  and  2001, approximately $2.8 million have been reserved for lease
abandonment,  $1.5  million  has  been  paid against the reserve.  Approximately
$1.3  million  remained  accrued  for future lease payments related to abandoned
leases  at  September  30,  2001 including $0.8 million classified as long term.

(7)  COMPREHENSIVE  LOSS

     Other comprehensive loss refers to revenue, expenses, gains and losses that
under  generally  accepted accounting principles in the United States of America
are  recorded  as  an  element of shareholders' equity and are excluded from net
income  (loss).  Other comprehensive loss of the Company is comprised of foreign
currency translation adjustments from international subsidiaries. The components
of  comprehensive  income  (loss)  are  listed  below  (in  thousands):

<TABLE>
<CAPTION>
                       THREE MONTHS ENDED      NINE MONTHS ENDED
                         SEPTEMBER  30,          SEPTEMBER  30,
                     ----------------------  ----------------------
                        2001        2000         2001       2000
                     ----------  ----------  ----------  ----------
<S>                  <C>         <C>         <C>         <C>
Net loss. . . . . .  $    (558)  $    (884)  $  (5,856)  $ (11,426)
Other comprehensive        (69)       (241)       (284)       (495)
                     ----------  ----------  ----------  ----------
Comprehensive loss.  $    (627)  $  (1,125)  $  (6,140)  $ (11,921)
                     ==========  ==========  ==========  ==========
</TABLE>

(8)  EARNINGS  PER  SHARE

     Basic  earnings  per  share has been computed based on the weighted average
number  of  common  shares  outstanding  during  the  applicable period. Diluted
earnings per share includes the number of shares issuable upon exercise of stock
options,  less  the  number  of shares that could have been repurchased with the
exercise  proceeds,  using  the  treasury  stock  method.

     The  following  table  summarizes the Company's computation of earnings per
share for the three months and nine months ended September 30, 2001 and 2000 (in
thousands,  except  share  amounts):

<TABLE>
<CAPTION>
                                                            THREE MONTHS ENDED      NINE MONTHS ENDED
                                                              SEPTEMBER  30,          SEPTEMBER  30,
                                                          ----------------------  ----------------------
                                                             2001        2000        2001        2000
                                                          ----------  ----------  ----------  ----------
<S>                                                       <C>         <C>         <C>         <C>
Basic loss per share . . . . . . . . . . . . . . . . . .  $   (0.07)  $   (0.14)  $   (0.70)  $   (1.78)
                                                          ==========  ==========  ==========  ==========
Net loss                                                  $    (558)  $    (884)  $  (5,856)  $ (11,426)
                                                          ==========  ==========  ==========  ==========
Weighted average shares outstanding                           8,419       6,419       8,419       6,419
Computation of diluted earnings per share:
  Common shares issuable under outstanding stock options          -           -           -           -
  Less shares assumed repurchased with proceeds from
  exercise of stock options                                       -           -           -           -
                                                          ----------  ----------  ----------  ----------
  Adjusted weighted average shares outstanding                8,419       6,419       8,419       6,419
                                                          ==========  ==========  ==========  ==========
Diluted loss per share                                    $   (0.07)  $   (0.14)  $   (0.70)  $   (1.78)
                                                          ==========  ==========  ==========  ==========
</TABLE>

     Approximately  428,000  antidilutive  options  were  excluded  from  the
calculation  of  diluted earnings per share for the three months and nine months
ended  September  30,  2001.


                                        8
<PAGE>
(9)  GEOGRAPHIC  FINANCIAL  DATA

     A  statement  of  certain  geographic  financial data is presented below by
operating  division  (in  thousands):

<TABLE>
<CAPTION>
                                                       EUROPE,
                                                     MIDDLE EAST
                                         AMERICAS     & AFRICA      ASIA PACIFIC     TOTAL
                                        ----------  -------------  --------------  ---------
<S>                                     <C>         <C>            <C>             <C>
THREE MONTHS ENDED SEPTEMBER 30, 2001
  Revenue. . . . . . . . . . . . . . .  $     810   $      3,699   $       1,334   $  5,843
  Operating income (loss). . . . . . .       (434)            57              32       (345)
THREE MONTHS ENDED SEPTEMBER 30, 2000
  Revenue. . . . . . . . . . . . . . .  $   3,915   $      2,549   $       1,684   $  8,148
  Operating income (loss). . . . . . .     (1,770)            31            (153)    (1,892)
NINE MONTHS ENDED SEPTEMBER 30, 2001
  Revenue. . . . . . . . . . . . . . .  $   4,462   $     13,089   $       4,435   $ 21,986
  Operating income (loss). . . . . . .     (3,721)           678              76     (2,967)
  Total assets . . . . . . . . . . . .      6,709          7,685           3,120     17,514
NINE MONTHS ENDED SEPTEMBER 30, 2000
  Revenue. . . . . . . . . . . . . . .  $   8,508   $      8,711   $       5,317   $ 22,536
  Operating loss . . . . . . . . . . .    (13,956)        (2,421)         (1,117)   (17,494)
  Total assets . . . . . . . . . . . .     17,054          4,360           2,295     23,709
</TABLE>


                            DA CONSULTING GROUP, INC.
ITEM 2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND
         RESULTS  OF  OPERATIONS

OVERVIEW

     The  Company  is  an  international  provider of education for employees of
companies  which  are  implementing business information technology. The Company
provides  customized  change  communications,  education and performance support
services  designed  to  maximize  its  clients'  returns  on  their  substantial
investments  in  business  information  technology.

     Recognizing  the global nature of its existing and prospective client base,
the  Company  has  built  a  substantial international presence.  The Company is
currently  organized  into  three  divisions:  the  Americas  Division; the EMEA
Division,  which  includes Europe; and the Asia Pacific Division, which includes
its  Australia  and  Asia  operations.

RESULTS  OF  OPERATIONS.

THREE  MONTHS ENDED SEPTEMBER 30, 2001, COMPARED TO THREE MONTHS ENDED SEPTEMBER
30,  2000

     Revenue.   Revenue  decreased  by $2.3 million, or 28.3%, from $8.1 million
in  the  third  quarter  of  2000  to $5.8 million in the third quarter of 2001,
reflecting  decreases  in volume of professional services and products partially
offset  by a modest increase in bill rates.   Revenue from the Americas Division
decreased  by  79.3%  from  $3.9  million to $0.8 million; revenue from the EMEA
Division  increased by 45.1% from $2.5 million to $3.7 million; and revenue from
the  Asia Pacific Division decreased by 20.8% from $1.7 million to $1.3 million.
The  Company ended the third quarter of 2001 with 268 total employees, down from
306  employees  at  the  end  of  the  same  period of the prior year.  Billable
headcount  has  decreased 3% compared to the third quarter of 2000.  Revenue for
the  third  quarter of 2001 was 23.2% less than revenue in the second quarter of
2001  due  to continued weak performance in the United States, seasonal declines
in  Europe  and timing of project starts in Asia.  The Company expects increased
revenue  in  the  upcoming  quarters  based  on  current  sales  activity.


                                        9
<PAGE>
     Gross  profit.  Gross profit decreased by $1.4 million, or 36.0%, from $3.9
million  in  the  third  quarter of 2000 to $2.5 million in the third quarter of
2001  and  decreased  as a percent of revenue from 48.2% in the third quarter of
2000  to  43.0%  in  the third quarter of 2001. The decrease in the gross profit
margin  percentage is primarily attributable to a reduction in staff utilization
partially  offset  by  a  modest  increase  in  bill  rates.

     Selling  and  marketing  expense.  Selling  and marketing expense decreased
$0.6  million  or  47.5%, from $1.2 million in the third quarter of 2000 to $0.6
million  in the third quarter of 2001. The decrease is the result of moving to a
localized  marketing  and  telesales  effort  in  support  of  a team of account
managers  in  2001.  Sales and marketing headcount totaled 22 persons at the end
of  September  30,  2001,  compared  to  19  persons  at  September  30,  2000.

     Development  expense.   Development expense decreased $895,000 or 97%, from
$923,000  in  the third quarter of 2000 to $28,000 in the third quarter of 2001.
Primary  expenditures  for development in the third quarter of 2000 were for the
development  of  the Company's proprietary web-based learning management system,
Dynamic  IQ,  completed  in  2000.  Development  staff  has been reduced from 18
persons  at  September  30,  2000  to  two  persons  at  September  30,  2001.

     The  Company announced it will pursue investors or buyers for its web-based
learning  management  system,  Dynamic  IQ.  The  cost  of  the  Dynamic  IQ has
previously  been  expensed.

     General  and  administrative  expense.  General  and administrative expense
decreased  by  $1.5 million, or 40.6%, from $3.7 million in the third quarter of
2000  to  $2.2  million in the third quarter of 2001. The decrease in expense is
due  primarily  to  a  reduction in administrative personnel and facilities as a
result  of  cost containment plans.   General and administrative personnel total
35  at  the  end  of  the third quarter of 2001 compared to 53 at the end of the
third  quarter  of  2000.

     Operating  loss.  Operating  loss  decreased from $1.9 million in the third
quarter  of  2000  to  an operating loss of $0.3 million in the third quarter of
2001.  The  operating  loss  decreased despite reduced revenue and gross margins
due  to  reductions  in  operating  expenses.

     Interest income (expense). Interest expense totaled $42,000 for the quarter
ended September 30, 2001, compared to interest income of $15,000 for the quarter
ended  September 30, 2000. Interest expense increased due to increased borrowing
in  the  quarter  ended  September  30,  2001.

     Other  income  (expenses).  Other  expenses totaled $201,000 in the quarter
ended  September  30,  2001,  compared to income of $43,000 in the quarter ended
September 30, 2000. The change was largely due to a $151,000 loss on the sale or
abandonment of fixed assets. The quarter ended September 30, 2000 included other
income  from  a  $100,000  gain  from  the  sale  of  a  business  in  Asia.

     Provision  (benefit)  for  income taxes. At September 30, 2001, the Company
had  $6.5  million of deferred tax assets, primarily consisting of net operating
loss  carryforwards,  net  of  a  $4.0  million  valuation  allowance, which was
recorded at September 30, 2001. The valuation reserve is made up of $2.6 million
in  tax benefits recorded in the prior year and $1.4 million in current year tax
benefits not recorded. In determining the amount of the valuation allowance, the
Company  considered  numerous factors, including, among other things, historical
profitability, estimated future taxable income and the volatility of earnings of
the  industry in which it operates. The primary factors considered in evaluating
the realizability of the deferred tax asset and the level of valuation allowance
were the continued operating losses for the Americas through September 30, 2001,
the  Company's projection of future operating results and the number of years it
will take to recover the tax asset in a difficult market. The $30,000 income tax
benefit  for  the  three months ended September 30, 2001, reflects the valuation
allowance.

     The  remaining  future  benefit  from  utilization  of  net  operating loss
carryforwards  could  be subject to limitations if significant ownership changes
occur  in the Company. Additionally, the Company's ability to realize the entire
benefit  of  its  deferred tax asset requires the Company achieve certain future
earnings levels prior to the expiration of its net operating loss carryforwards.
To  realize  the  $6.5 million of deferred tax assets in the future, the Company
would  need to earn about $17 million before the expiration of the net operating


                                       10
<PAGE>
loss  carryforwards. Further, the Company could be required to record additional
valuation  allowances  for a portion or all of its deferred tax assets if market
conditions deteriorate further and future earnings are below, or projected to be
below,  its current estimates. The Company will periodically review its deferred
tax  asset  to  determine  if  such  asset  is  realizable.

     The  effective  tax  rate for the three months ended September 30, 2001 and
2000  was  5.1%  and  51.8% respectively. The decrease in the effective tax rate
resulted  primarily  due to the reserving of current period operating losses for
the  Americas  Division.

     Net  loss.  The  Company's  net  loss  decreased  by $0.3 million from $0.9
million  in the third quarter of 2000 to a net loss of $0.6 million in the third
quarter of 2001 for reasons discussed above. Loss per share decreased from $0.14
in  the  third quarter of 2000 to a loss per share of $0.07 in the third quarter
of  2001.

NINE  MONTHS  ENDED  SEPTEMBER 30, 2001, COMPARED TO NINE MONTHS ENDED SEPTEMBER
30,  2000

     Revenue.   Revenue  decreased  by $0.5 million, or 2.4%, from $22.5 million
for  the  nine  months  ended  September 30, 2000, to $22.0 million for the nine
months  ended September 30, 2001, reflecting increases in product sales and bill
rates offset by a decrease in  volume of professional services. Revenue from the
Americas  Division decreased by 47.6% from $8.5 million to $4.5 million; revenue
from  the  EMEA  Division increased by 50.3% from $8.7 million to $13.1 million;
and  revenue from the Asia Pacific Division decreased by 16.6% from $5.3 million
to  $4.4  million.   Product  revenue increased from $592,000 in the first three
quarters  of  2000  to  $782,000  in  the  first  three  quarters  of  2001.

     Gross  profit.  Gross profit increased by $2.0 million, or 27.6%, from $7.1
million  for  the  nine months ended September 30, 2000, to $9.1 million for the
nine months ended September 30, 2001, and increased as a percent of revenue from
31.6%  in  2000  to  41.3%  in  2001.  The  increase  in the gross profit margin
percentage is primarily attributable to increased bill rates and  product sales,
a  small  increase  in staff utilization and  improved recovery of travel costs.

     Selling  and  marketing  expense.  Selling  and marketing expense decreased
$1.2 million or 31.6%, from $3.9 million for the nine months ended September 30,
2000,  to  $2.7 million for the same period of 2001.  The decrease is the result
of  cost  reduction  measures  and moving to a localized marketing and telesales
effort  in  support  of  a  team  of  account  managers  in  2001.

     Development  expense.   Development  expense  decreased  $2.4  million,  or
78.9%,  from  $3.1 million for the nine months ended September 30, 2000, to $0.7
million  for  the  same  period of 2001. Primary expenditures for development in
2000  were  for  preparation  of  tools  for  the  Version  4.6  SAP upgrade and
development  of  the Company's proprietary web-based learning management system,
Dynamic  IQ,  completed  in  2000.

     General  and  administrative  expense.  General  and administrative expense
decreased  by  $5.6  million,  or  38.7%, from $14.3 million for the nine months
ended  September  30,  2000,  to  $8.7  million for the same period in 2001. The
decrease in expense is due primarily to a reduction in headcount in the areas of
finance,  administration and human resources as a result of the cost containment
plans.  Due  to  additional  cost  reductions,  an  estimated  liability of $0.6
million  for  future lease payments related to idle property was recorded during
the  second quarter of 2001 and included in general and administrative expenses.

     Other  charges.  During  the  three  month period ended March 31, 2000, the
Company  implemented  a  plan  to  address  the dramatic decline in training and
documentation  activity  for  enterprise resource planning implementations.  The
plan  consisted  of  regional base consolidations and downsizing of billable and
non-billable  personnel.  Charges  included  the  costs  of involuntary employee
termination  benefits, write-down of certain property and equipment and reserves
for  leasehold abandonment.  The reduction in workforce consisted of 60 billable
consultants  and  44 non-billable administrative personnel. Substantially all of
the  employee  terminations were completed during the first quarter of 2000. The
Company  reserved approximately $1.5 million expense attributable to involuntary
employee termination benefits during the first quarter 2000 which has been paid.
In  addition,  the  Company  reserved  approximately $0.9 million related to the
abandonment  of  leases and approximately  $1.0 million related to the writedown


                                       11
<PAGE>
of leasehold improvements, furniture and equipment held by its Americas division
in  the  first  quarter  of  2000.  During  the  fourth  quarter of 2000, due to
weakening  in  the  real  estate market, the Company recorded an additional $1.3
million reserve for lease abandonment resulting in a total annual charge of $2.2
million  for  the  year  2000.

     Due  to  additional cost reductions, an estimated liability of $0.6 million
for  future  lease  payments  related  to  idle property was recorded during the
second  quarter  of  2001  and  included in general and administrative expenses.
During  2000  and  2001, approximately $2.8 million have been reserved for lease
abandonment,  $1.5  million  has  been  paid against the reserve.  Approximately
$1.3  million  remained  accrued  for future lease payments related to abandoned
leases  at  September  30, 2001, including $0.8 million classified as long-term.

     Operating  loss.  Operating  loss decreased from $17.5 million for the nine
months  ended  September  30, 2000, to an operating loss of $3.0 million for the
same  period  of  2001.  This  decrease  resulted  from  improved gross margins,
coupled  with  lower  operating expenses as compared to the first nine months of
2000.

     Interest  income (expense).  Interest  expense totaled $40,000 for the nine
months  ended  September  30,  2001, compared to $50,000 interest income for the
nine  months  ended  September  30,  2000.  Interest  expense  increased  due to
increased  borrowing  during  2001.

     Other  income (expenses).  Other expenses increased to $242,000 in the nine
months  ended September 30, 2001, compared to other income of $4,000 in the nine
months  ended  September  30,  2000,  largely  due  to  a  losses on the sale or
abandonment  of  fixed  assets totaling $157,000 in 2001.  The nine months ended
September  30, 2000, included $100,000 gain from the sale of a business in Asia.

     Provision  (benefit)  for  income taxes. At September 30, 2001, the Company
had  $6.5  million of deferred tax assets, primarily consisting of net operating
loss  carryforwards,  net  of  a  $4.0  million  valuation  allowance, which was
recorded at September 30, 2001. The valuation reserve is made up of $2.6 million
in  tax benefits recorded in the prior year and $1.4 million in current year tax
benefits not recorded. In determining the amount of the valuation allowance, the
Company  considered  numerous factors, including, among other things, historical
profitability, estimated future taxable income and the volatility of earnings of
the  industry in which it operates. The primary factors considered in evaluating
the realizability of the deferred tax asset and the level of valuation allowance
were the continued operating losses for the Americas through September 30, 2001,
the  Company's projection of future operating results and the number of years it
will  take  to  recover  the  tax asset in a difficult market. The provision for
income  taxes  of  $2.6  million  for  the nine months ended September 30, 2001,
reflects  the  valuation  allowance.

     The  remaining  future  benefit  from  utilization  of  net  operating loss
carryforwards  could  be subject to limitations if significant ownership changes
occur  in the Company. Additionally, the Company's ability to realize the entire
benefit  of  its  deferred tax asset requires the Company achieve certain future
earnings levels prior to the expiration of its net operating loss carryforwards.
To  realize  the  $6.5 million of deferred tax assets in the future, the Company
would  need to earn about $17 million before the expiration of the net operating
loss  carryforwards. Further, the Company could be required to record additional
valuation  allowances  for a portion or all of its deferred tax assets if market
conditions deteriorate further and future earnings are below, or projected to be
below,  its current estimates. The Company will periodically review its deferred
tax  asset  to  determine  if  such  asset  is  realizable.

     The  effective  rate  for the nine months ended September 30, 2001 and 2000
was  80.2%  and  34.5%,  respectively.  The  increase  in the effective tax rate
resulted  primarily  due  to  the  reserving  of prior period operating loss tax
benefits  associated  with  the  Americas  Division.

     Net  loss.  The  Company's  net  loss  decreased by $5.5 million from $11.4
million  for  the  nine  months  ended September 30, 2000, to a net loss of $5.9
million  for the nine months ended September 30, 2001, for the reasons discussed
above.  Loss  per share decreased from $1.78 for the nine months ended September
30, 2000, to a loss per share of $0.70 for the same period of 2001 due partially
to  the  number  of  shares  outstanding  and  reasons  discussed  above.


                                       12
<PAGE>
LIQUIDITY  AND  CAPITAL  RESOURCES

     Since  its  inception, the Company has historically financed its operations
and  growth  with  cash  flows  from  investment  by  shareholders,  operations,
short-term  borrowings  under  revolving  line  of  credit  arrangements  and
receivables-based  financing.

     The  Company's cash and cash equivalents were $0.3 million at September 30,
2001,  compared  to  $0.9  million  at December 31, 2000.  The Company's working
capital  deficit  was  $1.4  million  at September 30, 2001, and $1.1 million at
December  31,  2000.

     The  Company's  operating  activities required cash of $1.5 million for the
nine  months  ended  September  30,  2001, compared to $8.2 million for the same
period  in 2000. The decrease in cash used in operations resulted primarily from
reduced  operating  losses  and  reduced cash received from accounts receivable.
Partially  offset  by  income  taxes  and  reduced losses on write down of fixed
assets.

     Investing  activities  provided  cash  of  $0.2  in  the  nine months ended
September  30,  2001,  compared  to  cash  provided of $2.6 million for the same
period  in  2000.  During  the same period of 2000, the Company had net sales of
short-term  investments  of  $2.4  million.

     Financing  activities  provided  cash  of  $0.9 million for the nine months
ended  September  30,  2001, as a result of drawdowns on debt during the quarter
compared  to  $3.0  million  during  the  nine  months ended September 30, 2000.

     The  Company  has  an agreement with a bank which provides for financing of
eligible  U.S.  accounts  receivable  under  a purchase and sale agreement.  The
maximum  funds available under this agreement is $5.0 million.  At September 30,
2001,  the Company had sold  $211,000 of receivables pursuant to this agreement.
In  March  2000,  the  Company  obtained  a credit facility from a bank  with  a
maximum  line  of  credit  of  approximately  $1.1  million  based  on  eligible
foreign  accounts  receivable  which  was completely used at September 30, 2001.

     Capital  expenditures  for  the  next  twelve months are not expected to be
significant.

     The Company believes its current cash balances, receivable-based financing,
revolving  line  of  credit  and  cash  provided  by  future  operations will be
sufficient to meet the Company's working capital and cash needs for at least the
next  12-month  period.  However, there can be no assurance that such sources of
funds  will  be  sufficient to meet these needs. The Company may seek additional
financing  through public or private placement of equity. The Company's need for
additional  financing  will  be  principally  dependent  on the degree of market
demand  for  the  Company's services. There can be no assurance that the Company
would  be  able  to  obtain additional financing on acceptable terms, if at all.

New  Accounting  Pronouncements

     The  Financial  Accounting  Standard  Board  recently  issued  Statement of
Financial  Accounting  Standards  No.  141  ("SFAS 141"), Business Combinations,
which  requires  that  all  business  combinations  be  accounted  for using the
purchase method.  In addition, this Statement requires that intangible assets be
recognized  as  assets  apart  from goodwill if certain criteria are met. As the
provisions of this Statement apply to all business combinations, management will
consider  the  impact  of  this  statement  for  future  combinations.

     The  Financial  Accounting  Standard  Board  recently  issued  Statement of
Financial  Accounting  Standards  No.  142  ("SFAS  142"),  Goodwill  and  Other
Intangible  Assets,  which established Standards for reporting acquired goodwill
and  other  intangible assets. This Statement accounts for goodwill based on the
reporting  units  of  the  combined  entity  into  which  an  acquired entity is
integrated.  In  accordance  with  the  Statement  goodwill and indefinite lived
intangible  assets will not be amortized, goodwill will be tested for impairment
at  least annually at the reporting unit level, intangible assets deemed to have
an  indefinite  life  will  be  tested for impairment at least annually, and the
amortization  period  of intangible assets with finite lives will not be limited
to  forty  years.  The  provisions  of this Statement are required to be applied
starting  with  fiscal  years beginning after December 15, 2001. The Company has
approximately  $365,000  of  goodwill included in its balance sheet at September


                                       13
<PAGE>
30,  2001.  Goodwill  amortization for the nine months ended September 30, 2001,
was  approximately  $15,000 and is currently expected to approximate $20,000 for
the year ended December 31, 2001, before the provisions of SFAS 142 are applied.
Implementation  of  SFAS  142  by  the  Company may result in the elimination of
amortization  of  goodwill.

FORWARD-LOOKING  STATEMENTS

     This Quarterly Report on Form 10-Q contains certain statements that are not
historical  facts which constitute forward-looking statements within the meaning
of  the  Private Securities Legislation Reform Act of 1995 which provides a safe
harbor  for  forward-looking  statements.  These  forward-looking statements are
subject  to  substantial  risks and uncertainties that could cause the Company's
actual  results,  performance  or  achievements  to differ materially from those
expressed  or  implied  by  these forward-looking statements.  When used in this
Report,  the  words "anticipate," "believe," "expect" and similar expressions as
they  relate  to  the  Company  or  its management are intended to identify such
forward-looking  statements.  Actual  future  results  and  trends  may  differ
materially from historical results as a result of certain factors, including but
not  limited  to:  dependence  on  SAP  AG  and  the  ERP software market, risks
associated  with  management  of  a  geographically  dispersed  organization,
fluctuating  quarterly  results,  the  need  to  attract and retain professional
employees,  substantial  competition,  dependence  on  key  personnel,  risks
associated  with  management  of  growth,  rapid  technological  change, limited
protection  of  proprietary  expertise,  methodologies  and software, as well as
those  set  forth  in  the Risk Factors section  and Management's Discussion and
Analysis  section  in the Company's Annual Report on Form 10-K and other filings
with  the  Securities  and  Exchange  Commission.

ITEM 3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

     The Company from time to time holds short-term investments which consist of
variable  rate  municipal  debt  instruments.  The  Company  uses  a sensitivity
analysis  technique  to  evaluate the hypothetical effect that changes in market
interest  rates  may  have  on  the fair value of the Company's investments.  At
September  30,  2001,  the  Company  did  not  hold  any short-term investments.

     Currency  exchange  rate fluctuations between the U.S. dollar and the Euro,
British  pound,  French  franc,  Canadian  dollar,  Singapore  dollar,  and  the
Australian  dollar  have  an  impact  on  revenue  and expenses of the Company's
international operations.  Dramatic fluctuations could have a negative effect on
the  Company's  financial  condition  and  results  of  operations.


                            DA CONSULTING GROUP, INC.

                            PART II-OTHER INFORMATION


ITEM 6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

     (a)  Exhibits

          None.

     (b)  Reports  on  Form  8-K

          No  reports  on  Form 8-K were filed during the reporting period ended
          September  30,  2001.


                                       14
<PAGE>
SIGNATURES

     Pursuant  to  the  requirements of the Securities Exchange Act of 1934, the
Registrant  has  duly  caused  this  Report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.

                                   DA CONSULTING GROUP, INC.
                                   (Registrant)

Dated: November 14, 2001        By:     /s/ Dr. B.K. Prasad
                                   ---------------------------------------------
                                           Dr. B.K. Prasad
                                               Chairman


                                By:     /s/ Dennis C. Fairchild
                                   ---------------------------------------------
                                           Dennis C. Fairchild
                                Chief Financial Officer, Secretary and Treasurer
                                (Principal Financial and Accounting Officer)



                                       15
<PAGE>