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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,  2000.

                                       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
  incorporation or organization)                          Identification No.)


                        5847 SAN FELIPE ROAD, SUITE 3700
                              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 10, 2000 - 8,418,604
================================================================================


<PAGE>
<TABLE>
<CAPTION>
                            DA CONSULTING GROUP, INC.
                                      INDEX
                                     PART I
                              FINANCIAL INFORMATION
                                                                                          PAGE NO.
                                                                                          --------
<S>          <C>                                                                          <C>
Item  1.     Financial  Statements
             Condensed  Consolidated  Balance  Sheets  as  of  December  31,  1999
                 and  September  30,  2000  (unaudited). . .. . . . . . . . . . . . . . . . .  3
             Condensed  Consolidated Statements of Operations for the Three Months ended
                 September  30,  1999  and  2000  (unaudited. . . . . . . . . . . . . . . . .  4
             Condensed  Consolidated  Statements of Operations for the Nine Months ended
                 September  30,  1999  and  2000  (unaudited) . . . . . . . . . . . . . . . .  4
             Condensed  Consolidated  Statements of Cash Flows for the Nine Months ended
                 September  30,  1999  and  2000  (unaudited) . . . . . . . . . . . . . . . .  5
             Notes  to  Condensed  Consolidated  Financial  Statements  (unaudited) . . . . .  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. . . . . . . .  12


                                     PART II

                                OTHER INFORMATION

Item  2.    Changes  in  Securities  and  Use  of  Proceeds . . . . . . . . . . . . . . . .  13
Item 4.     Submission of Matters to a Vote of Security Holders . . . . . . . . . . . . . .  13

Item  6.    Exhibits  and  Reports  on  Form 8-K . . . . . . . . . . . . . . . . . . . . .   13

Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   14
</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)


                                                                          DECEMBER 31,  SEPTEMBER 30,
                                                                              1999         2000
                                                                          ------------  ------------
                                  ASSETS                                                (Unaudited)
                                  -----
<S>                                                                       <C>           <C>
Current Assets:
Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . .  $     3,406   $    326
  Short-term investments . . . . . . . . . . . . . . . . . . . . . . . .        2,389         --
  Accounts receivable - net. . . . . . . . . . . . . . . . . . . . . . .        8,578      3,759
  Unbilled revenue . . . . . . . . . . . . . . . . . . . . . . . . . . .          434      1,203
  Income taxes receivable. . . . . . . . . . . . . . . . . . . . . . . .        2,979      1,080
  Deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . .          445      1,590
  Prepaid expenses and other current assets. . . . . . . . . . . . . . .          456        413
                                                                          ------------  ------------
      Total current assets . . . . . . . . . . . . . . . . . . . . . . .       18,687      8,371
                                                                          ------------  ------------
  Property and equipment, net. . . . . . . . . . . . . . . . . . . . . .       12,368      8,779
  Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           --        133
  Deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . .        1,464      6,041
  Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . .          399        385
                                                                          ------------  ------------
        Total assets . . . . . . . . . . . . . . . . . . . . . . . . . .  $    32,918   $ 23,709
                                                                          ============  ============

         LIABILITIES AND SHAREHOLDERS' EQUITY
         ------------------------------------
Current Liabilities:
  Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . .  $     1,955   $  1,961
  Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . .        5,613      5,368
  Notes payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . .           --      3,016
  Deferred income. . . . . . . . . . . . . . . . . . . . . . . . . . . .          112         47
                                                                          ------------  ------------
      Total current liabilities. . . . . . . . . . . . . . . . . . . . .        7,680     10,392
                                                                          ------------  ------------

Shareholder's Equity:
  Preferred stock, $0.01 par value: 10,000,000 shares authorized . . . .           --         --
  Common stock, $0.01 par value: 40,000,000 shares authorized; 6,571,777
    shares issued; 6,418,604 shares outstanding at December 31, 1999 and
   September 30, 2000. . . . . . . . . . . . . . . . . . . . . . . . . .           65         65
  Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . .       29,355     29,355
  Accumulated deficit. . . . . . . . . . . . . . . . . . . . . . . . . .       (1,865)   (13,291)
  Accumulated other comprehensive loss . . . . . . . . . . . . . . . . .         (795)    (1,290)
  Treasury stock, at cost: 153,173 shares at December 31, 1999 and
    September 30, 2000 . . . . . . . . . . . . . . . . . . . . . . . . .       (1,522)    (1,522)
                                                                          ------------  ------------
      Total shareholders' equity . . . . . . . . . . . . . . . . . . . .       25,238     13,317
                                                                          ------------  ------------
        Total liabilities and shareholders' equity . . . . . . . . . . .  $    32,918   $ 23,709
                                                                          ============  ============

The accompanying notes are an  integral  part  of the condensed consolidated financial  statements.
</TABLE>


                                        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,
                                       1999      2000      1999      2000
                                     --------  --------  --------  ---------
<S>                                  <C>       <C>       <C>       <C>
Revenue . . . . . . . . . . . . . .  $15,804   $ 8,148   $61,980   $ 22,536
Cost of revenue . . . . . . . . . .    8,426     4,224    31,316     15,413
                                     --------  --------  --------  ---------
  Gross profit. . . . . . . . . . .    7,378     3,924    30,664      7,123

Selling and marketing expense . . .    1,621     1,154     5,748      3,877
Development expense . . . . . . . .      350       923     1,815      3,124
General and administrative expense.    9,012     3,739    24,238     14,262
Restructuring charge. . . . . . . .       --        --        --      3,354
                                     --------  --------  --------  ---------
  Operating loss. . . . . . . . . .   (3,605)   (1,892)   (1,137)   (17,494)
Interest income, net. . . . . . . .       92        15       309         50
Other income (expense), net . . . .       (2)       43       (90)         4
                                     --------  --------  --------  ---------
  Total other income, net . . . . .       90        58       219         54
                                     --------  --------  --------  ---------
  Loss before taxes . . . . . . . .   (3,515)   (1,834)     (918)   (17,440)
Benefit for income taxes. . . . . .   (1,318)     (950)     (326)    (6,014)
                                     --------  --------  --------  ---------
      Net loss. . . . . . . . . . .  $(2,197)  $  (884)  $  (592)  $(11,426)
                                     ========  ========  ========  =========

Basic net loss per share. . . . . .  $ (0.34)  $ (0.14)  $ (0.09)  $  (1.78)
Weighted average shares outstanding    6,419     6,419     6,452      6,419
Diluted net loss per share. . . . .  $ (0.34)  $ (0.14)  $ (0.09)  $  (1.78)
Weighted average shares outstanding    6,419     6,419     6,452      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,
                                                                                    1999      2000
                                                                                  --------  ---------
<S>                                                                               <C>       <C>
Cash flows from operating activities:
  Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $  (592)  $(11,426)
  Adjustments to reconcile net loss to net cash used in
   operating activities:
    Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . .    1,758      2,413
    Deferred income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . .      206     (5,722)
    Loss on sale of property and equipment . . . . . . . . . . . . . . . . . . .       41         --
    Writedown of property and equipment and reserve for leasehold
    abandonment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       --      1,935
    Changes in operating assets and liabilities:
      Accounts receivable and unbilled revenue . . . . . . . . . . . . . . . . .     (502)     4,050
      Income taxes receivable. . . . . . . . . . . . . . . . . . . . . . . . . .      270      1,899
      Prepaid expenses and other current assets. . . . . . . . . . . . . . . . .   (1,028)        43
      Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      120       (133)
      Accounts payable and accrued expenses. . . . . . . . . . . . . . . . . . .   (2,632)    (1,174)
      Deferred income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     (639)       (65)
      Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . .     (592)        --
                                                                                  --------  ---------
        Total adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . .   (2,998)     3,246
                                                                                  --------  ---------
        Net cash used in operating activities. . . . . . . . . . . . . . . . . .   (3,590)    (8,180)
                                                                                  --------  ---------

Cash flows from investing activities:
  Proceeds from sale of property and equipment . . . . . . . . . . . . . . . . .       15        260
  Sales of short-term investments. . . . . . . . . . . . . . . . . . . . . . . .    7,723      2,389
  Purchases of short-term investments. . . . . . . . . . . . . . . . . . . . . .       (5)        --
  Purchases of property and equipment. . . . . . . . . . . . . . . . . . . . . .   (5,649)       (70)
                                                                                  --------  ---------
        Net cash provided by investing activities. . . . . . . . . . . . . . . .    2,084      2,579
                                                                                  --------  ---------
Cash flows from financing activities:
  Stock repurchases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (1,943)        --
  Proceeds from stock option exercises . . . . . . . . . . . . . . . . . . . . .      537         --
  Proceeds from bridge loan. . . . . . . . . . . . . . . . . . . . . . . . . . .       --      2,000
  Net proceeds from revolving line of credit . . . . . . . . . . . . . . . . . .       --      1,016
                                                                                  --------  ---------
        Net cash provided by (used in)  financing activities . . . . . . . . . .   (1,406)     3,016
                                                                                  --------  ---------
Effect of changes in foreign currency exchange rate on cash and cash equivalents       72       (495)
                                                                                  --------  ---------
        Decrease in cash and cash equivalents. . . . . . . . . . . . . . . . . .   (2,840)    (3,080)
Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . .    9,971      3,406
                                                                                  --------  ---------
Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . .  $ 7,131   $    326
                                                                                  ========  =========

   The accompanying notes are an integral part of the condensed consolidated financial statements.
</TABLE>


                                        5
<PAGE>
                            DA CONSULTING GROUP, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

(1)  ORGANIZATION  AND  BUSINESS

     DA  Consulting  Group,  Inc.  and  its subsidiaries (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, which includes
its  North  America  operations;  the  EMEA  Division, which includes its Europe
operations; and the Asia Pacific Division, which includes its Australia and Asia
operations.

(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 generally accepted accounting principles 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 and the notes thereto as of and for
the  year  ended  December  31, 1999, 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.  Certain  reclassifications have been made to prior
year  amounts  to  conform  to  the  current  year presentation.  The results of
operations  for  the  interim  periods  presented  herein  are  not  necessarily
indicative  of  the  results  to  be  expected  for  the  full  year.

(3)  LIQUIDITY

     The  Company believes its current cash balances, the proceeds of the equity
financing  received  on  October  16, 2000, receivable-based financings and cash
provided  by  future operations will be sufficient to meet the Company's working
capital and cash needs through the foreseeable future.  However, there can be no
assurance  that  such  sources  of funds will be sufficient to meet these future
expenses  and  our  future  needs.   The Company's need for additional financing
will  be  principally  dependent  on shareholder approval of the proposed equity
placement  announced  August  3, 2000 and the degree of future market demand for
the  Company's  services.

(4)  INCOME  TAXES

     At  September 30, 2000, the Company had $7.6 million of deferred tax assets
primarily  consisting  of unused net operating losses.  The Company continues to
believe  it will generate sufficient taxable income to ensure realization of the
benefit,  accordingly,  no  valuation  allowance  has  been  provided.

     The  benefit from the utilization of net operating loss carryforwards could
be subject to limitations if significant ownership changes occur in the Company.


                                        6
<PAGE>
(5)  NOTES  PAYABLE


     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 million.  As of September 30,
2000,  the  Company  had  sold  $0.7  million  of  receivables  pursuant to this
agreement.  During  March  2000,  the  Company obtained a credit facility from a
bank  with  a  maximum  line  of  credit of approximately $1.0 million, based on
eligible  foreign  accounts  receivable.  At September 30, 2000, the Company had
drawn  down  $1.0  million  of  this  line.

     On  August 3, 2000, the Company signed an agreement with a private investor
for  the  purchase  of two million shares of the Company's common stock for $4.8
million  and  warrants  to  purchase up to three million shares of the Company's
common  stock  in  future  periods as specified in the agreement.  In connection
with the agreement, the investor loaned the Company $2.0 million.  This loan was
unsecured  and was credited towards the purchase price of shares of common stock
purchased  by  the investor at the closing of the transaction, which was October
16,  2000.

(6)  RESTRUCTURING  CHARGE

     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. The Company
recognized  approximately  $1.5  million  expense  attributable  to  involuntary
employee  termination  benefits during the first quarter, of which approximately
$1.2  million  has  been paid at September 30, 2000. In addition the Company has
reserved  approximately  $0.9  million  related to the abandonment of leases and
approximately  $1.0  million related to the writedown of leasehold improvements,
furniture  and  equipment  held  by  its Americas division.  Of the $0.9 million
reserved  for  lease  abandonment,  approximately $0.6 has been paid against the
reserve.  At September 30, 2000, the Company believes the remaining provision is
adequate  to cover the future costs attributable to this plan.  At September 30,
2000  an accrual of approximately $305,000 for severance pay remained related to
severance  contracts  being  paid  over  a  12-month  period.  In  addition,
approximately  $273,000  remained  accrued  for future lease payments related to
abandoned  leases.

(7)  COMPREHENSIVE  INCOME

     Comprehensive  income is comprised of two components: net income and  other
comprehensive  income.  Other comprehensive income refers to revenues, expenses,
gains  and  losses  that  under  generally  accepted  accounting  principles are
recorded as an element of stockholder's equity and are excluded from net income.
Other   comprehensive  income  (loss)  comprises  foreign  currency  translation
adjustments  from  international  subsidiaries.  The components of comprehensive
income  (loss)  are  listed  below:

                                   Three Months Ended  Nine Months Ended
                                     September 30,       September 30,
(in thousands)                       1999      2000     1999     2000
                                   --------  --------  ------  ---------

Net loss. . . . . . . . . . . . .  $(2,197)  $  (884)  $(592)  $(11,426)
Other comprehensive income (loss)       92      (241)     72       (495)
                                   --------  --------  ------  ---------
Comprehensive loss. . . . . . . .   (2,105)  $(1,125)  $(520)  $(11,921)
                                   ========  ========  ======  =========


                                        7
<PAGE>
(8)  EARNINGS  PER  SHARE

     Basic  net  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. As a result of net
losses  for  the  applicable periods, common stock equivalents were antidilutive
and,  accordingly,  dilutive  net  earnings  per  share is the same as basic net
earnings  per  share  for  such  periods.

     Antidilutive  stock  options  excluded  from the diluted earnings per share
calculation  were 1,015,920 for the three months and nine months ended September
30,  1999 and 1,353,970 for the three months and nine months ended September 30,
2000.


(9)  GEOGRAPHIC  FINANCIAL  DATA

     Revenue  and  operating  income  (loss)  from  the Company's operations are
presented  below  by  operating  division:

<TABLE>
<CAPTION>
                                                          EUROPE,
                                                       MIDDLE EAST
                                          AMERICAS      & AFRICA    ASIA PACIFIC     TOTAL
(In thousands)                          -------------  ----------  --------------  ---------
<S>                                     <C>            <C>         <C>             <C>
THREE MONTHS ENDED SEPTEMBER 30, 1999
     Revenue . . . . . . . . . . . . .  $      8,827   $   4,076   $       2,901   $ 15,804
   Operating income (loss) . . . . . .        (2,811)       (872)             78     (3,605)
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, 1999
     Revenue . . . . . . . . . . . . .  $     38,267   $  16,984   $       6,729   $ 61,980
   Operating income (loss) . . . . . .          (482)         38            (693)    (1,137)
   Total assets. . . . . . . . . . . .        32,105       7,714           3,498     43,317
NINE MONTHS ENDED SEPTEMBER 30, 2000
     Revenue . . . . . . . . . . . . .  $      8,508   $   8,711   $       5,317   $ 22,536
   Operating income (loss) . . . . . .       (13,956)     (2,421)         (1,117)   (17,494)
   Total assets. . . . . . . . . . . .        17,054       4,360           2,295     23,709
</TABLE>


(10) SUBSEQUENT EVENT

     On October 16,  2000,  the Company  consummated  the sale to Purse  Holding
     Limited ("Purse"), a British Virgin Islands limited company, of two million
     shares of the  Company's  common  stock for $4.8  million  and  warrants to
     purchase up to three million shares of the Company's common stock. The sale
     was effected pursuant to a Securities  Purchase Agreement ("the Agreement")
     dated  August 2, 2000,  between the Company and Purse.  The  Agreement  was
     approved by the Company's shareholders at a special meeting held on October
     12, 2000. The Company credited its $2 million loan,  received from Purse on
     August 3, 2000,  toward the $4.8 million  purchase price of the two million
     shares of its common stock.

     In  accordance  with the terms of the  Agreement,  the  Company  issued two
     million  shares of common  stock at a price of $2.40 per share and warrants
     to  purchase  (a) two million  shares of common  stock,  exercisable  until
     October  16,  2003,  at the greater of $3.00 per share or 85% of the market
     price  per  share of  common  stock at the  time of  exercise,  and (b) one
     million  shares of common stock,  exercisable  for the period of time after
     January 1, 2002, and until October 16, 2003, at $3.00 per share.


                                        8
<PAGE>
                            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, which includes
its  United  States and Canada operations; the EMEA Division, which includes its
Europe  operations;  and the Asia Pacific Division, which includes its Australia
and  Asia  operations.

RESULTS  OF  OPERATIONS.

 THREE  MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THREE MONTHS ENDED SEPTEMBER
 30,  2000

     Revenue.   Revenue  decreased by $7.7 million, or 48.4%, from $15.8 million
in  the  third  quarter  of  1999  to $8.1 million in the third quarter of 2000,
reflecting decreases in volume of services and a decrease in average bill rates.
Revenue  from the Americas Division decreased by 55.5% from $8.8 million to $3.9
million;  revenue from the EMEA Division decreased by 37.4% from $4.1 million to
$2.5  million;  and  revenues  from the Asia Pacific Division decreased by 42.0%
from  $2.9 million to $1.7 million. The Company ended the third quarter with 306
total  employees,  down  from 727 employees at the end of the same period of the
prior year.  Revenue for the third quarter of 2000 increased by 1.6% compared to
revenue  of  $8.0  million in the second quarter of 2000 due to strong growth in
the  Americas  division  offset  by loss of revenue in the EMEA and Asia Pacific
divisions.

     Gross  profit.  Gross profit decreased by $3.5 million, or 46.8%, from $7.4
million  in  the  third  quarter of 1999 to $3.9 million in the third quarter of
2000  and  increased  as a percent of revenue from 46.7% in the third quarter of
1999  to  48.2%  in  the third quarter of 2000. The increase in the gross profit
margin  percentage  is  primarily  attributable  to increased staff utilization.
Gross  profit  for  the third quarter of 2000 increased by $1.1 million or 42.2%
compared  to the second quarter of 2000 due to increased staff utilization and a
higher  average  bill  rate.

     Selling  and  marketing  expense.  Selling  and marketing expense decreased
$0.5  million  or  28.8%, from $1.6 million in the third quarter of 1999 to $1.2
million  in  the  third  quarter  of  2000.  The  decrease is the result of cost
reduction  measures  implemented  during  the  first quarter of 2000 and reduced
commissions  expense  related to the reduced level of sales in the third quarter
of  2000  as  compared  to  the  same  period  of  1999.

     Development  expense.   Development  expense  increased  $0.6  million  or
163.7%,  from  $0.4  million in the third quarter of 1999 to $0.9 million in the
third quarter of 2000. The increase in costs during the third quarter of 2000 is
due  to  professional  fees  incurred  for  the  development  of  the  Company's
web-enabled  learning  management  system,  which will be officially launched in
November.

     General  and  administrative  expense.  General  and administrative expense
decreased  by  $5.3 million, or 58.5%, from $9.0 million in the third quarter of
1999  to  $3.7  million in the third quarter of 2000. 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
implemented  during  the  latter  half  of  1999  and the first quarter of 2000.

     Operating  loss.  Operating  loss  decreased from a loss of $3.6 million in
the  third  quarter  of  1999  to an operating loss of $1.9 million in the third
quarter  of  2000.  This  decrease in loss is related to cost reduction measures
taken  during  the  first  half of 2000, primarily in general and administrative
expense,  which  offset the decrease in revenue for the third quarter of 2000 as
compared  to  the  same  period  of  1999.


                                        9
<PAGE>
     Other  income  (expense),  net.  Other  income  (expense), net changed from
income of $90,000 in the third quarter of 1999 to income of $58,000 in the third
quarter  of  2000.  Interest  income,  net  decreased  from $92,000 in the third
quarter  of  1999  to  $15,000  in  the  third quarter of 2000.  The decrease in
interest  income  is  due  to  lower  cash  balances  available  for investment.

     Benefit  for  income  taxes.  The Company's effective tax rate was 37.5% in
the  third  quarter of 1999 compared to 51.8% in the third quarter of 2000.  The
increase  in  the  effective tax rate is due to a year-to-date adjustment to the
deferred  tax  asset  in  the  Asia  Pacific  Division.

     Net  loss.  The  Company's  net  loss  decreased  by $1.3 million from $2.2
million  in  the  third  quarter of 1999 to $0.9 million in the third quarter of
2000  for  the  reasons  discussed  above.  Basic and diluted net loss per share
decreased  from $0.34 in the third quarter of 1999 to $0.14 in the third quarter
of  2000.

NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
2000

     Revenue.   Revenue decreased by $39.4 million, or 63.6%, from $62.0 million
for  the  nine  months  ended  September  30, 1999 to $22.5 million for the nine
months  ended September 30, 2000, reflecting decreases in volume of services and
a decrease in average bill rates.   Revenue from the Americas Division decreased
by  77.8%  from  $38.3  million  to $8.5 million; revenue from the EMEA Division
decreased by 48.7% from $17.0 million to $8.7 million; and revenue from the Asia
Pacific Division decreased by 21.0% from $6.7 million to $5.3 million. While the
market  for enterprise resource planning software began recovering in the fourth
quarter  of  1999,  the  Company  began seeing recovery in the second quarter of
2000,  as  the  Company's  revenue generally lag the software sale from three to
nine  months.

     Gross  profit.  Gross  profit  decreased  by  $23.5 million, or 76.8%, from
$30.7  million  for the nine months ended September 30, 1999 to $7.1 million for
the  nine  months ended September 30, 2000 and decreased as a percent of revenue
from  49.5%  in  1999  to 31.6% in 2000. The decrease in the gross profit margin
percentage  is  primarily  attributable to decreased staff utilization and lower
hourly  bill  rates.

     Selling  and  marketing  expense.  Selling  and marketing expense decreased
$1.9  million  or  32.6%,  from $5.7 million for the nine months ended September
30,1999  to $3.9 million for the same period of 2000. The decrease is the result
of  cost  reduction  measures  implemented  during the first quarter of 2000 and
reduced  commissions  expense related to the reduced level of sales for the nine
months  ended  September  30,  2000  as  compared  to  the  same period of 1999.

     Development expense.   Development expense increased $1.3 million or 72.1%,
from  $1.8  million for the nine months ended September 30, 1999 to $3.1 million
for  the  nine months ended September 30, 2000. The increase in costs during the
nine  months  ended  September 30, 2000 is due to professional fees incurred for
the  development  of the Company's web-enabled learning management system, which
will  be officially launched in November.  The Company expects development costs
related  to  the  web-enabled  learning management system to be lower during the
remainder  of the year.  These costs were offset in part by reduced headcount as
a  result  of  cost containment plans implemented during the latter half of 1999
and  the  first  quarter  of  2000.

     General  and  administrative  expense.  General  and administrative expense
decreased  by  $10.0  million,  or 41.1%, from $24.2 million for the nine months
ended  September  30,  1999 to $14.3 million for the nine months ended September
30,  2000.  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 implemented during the latter half of 1999 and the first
quarter  of  2000.  In  addition  facilities costs were reduced by approximately
$1.7  million  by consolidating locations during the nine months ended September
30,  2000.


                                       10
<PAGE>
     Restructuring  Charge.  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. The Company
recognized  approximately  $1.5  million  expense  attributable  to  involuntary
employee  termination  benefits during the first quarter, of which approximately
$1.2  million  has  been paid at September 30, 2000. In addition the Company has
reserved  approximately  $0.9  million  related to the abandonment of leases and
approximately  $1.0  million related to the writedown of leasehold improvements,
furniture  and  equipment  held  by  its Americas division.  Of the $0.9 million
reserved  for  lease  abandonment,  approximately $0.6 has been paid against the
reserve.  At  September  30,  2000,  the  Company  believes  that  the remaining
provision  is  adequate to cover the future costs attributable to this plan.  At
September  30,  2000  an  accrual  of  approximately  $305,000 for severance pay
remained  related  to severance contracts being paid over a 12-month period.  In
addition,  approximately  $273,000  remained  accrued  for future lease payments
related  to  abandoned  leases.

     Operating  loss.  Operating  loss  increased from $1.1 million for the nine
months  ended  September  30, 1999 to $17.5 million for the same period of 2000.
The  increase  resulted  from  rapid decreases in revenue beginning in the third
quarter  of  1999,  resulting in lower expense coverage during nine months ended
September  30,  2000  as  compared  to  the revenues in the same period of 1999.

     Other  income  (expense)  net.  Other  income  (expense),  net changed from
$219,000  for  the  nine months ended September 30, 1999 to $54,000 for the same
period  of  2000.  Interest  income,  net  decreased  from $309,000 for the nine
months  ended  September  30,  1999 to $50,000 for the same period of 2000.  The
decrease  in  interest  income  is  due  to  lower  cash  balances available for
investment.

     Benefit  for  income taxes.  The Company's effective tax rate was 35.5% for
the  nine  months ended September 30, 1999 compared to 34.5% for the nine months
ended  September  30, 2000.  The decrease in the effective rate is the result of
certain  nondeductible  foreign  operating  losses.

     Net  loss.  The  Company's  net  loss  increased by $10.8 million from $0.6
million  for  the  nine months ended September 30, 1999 to $11.4 million for the
nine  months  ended  September  30,  2000 for reasons discussed above. Basic and
diluted  net  loss  per  share  increased  from  $0.09 for the nine months ended
September  30,  1999  to  $1.78  for  the  same  period  of  2000.

LIQUIDITY  AND  CAPITAL  RESOURCES

     Since  its  inception, the Company has historically financed its operations
with cash flow from operations, supplemented by the issuance of common stock and
short-term  borrowings  under  revolving  line  of  credit  arrangements.

     The  Company's cash and cash equivalents were $0.3 million at September 30,
2000,  compared  to  $3.4  million  at December 31, 1999.  The Company's working
capital  deficit  was  $2.0  million  at  September 30, 2000 compared to working
capital  surplus  of  $11.0  million  at  December  31,  1999.

     The  Company's  operating  activities required cash of $8.2 million for the
nine  months  ended  September  30,  2000,  compared  to  $3.6  million  used in
operations for the same period in 1999.  The increase in cash used in operations
resulted  primarily  from  operating  losses  incurred  in the nine months ended
September  30,  2000 and increase in deferred income taxes offset by a reduction
in  accounts  receivable  and  income  taxes  receivable.

     Investing activities provided cash of $2.6 million in the nine months ended
September  30,  2000,  compared  to  cash  provided of $2.1 million for the same
period  in  1999.  During the nine months ended September 30, 2000, $2.4 million
was  provided  by  the sale of short-term investments. During the same period of
1999 the Company had net sales of short-term investments of $7.7 million, offset
by  $5.6  million  of  purchases  of  property  and  equipment.


                                       11
<PAGE>
     Financing  activities  provided  cash  of  $3.0 million for the nine months
ended  September 30, 2000 as a result of a bridge loan of $2 million provided by
Purse  Holdings,  Limited.  In  addition, the Company borrowed $1.0 million on a
short-term  line  of  credit during the period.  During the same period of 1999,
financing  activities  used  cash  of  $1.4  million  as a result of the Company
repurchasing  200,000  shares  of  common  stock for $1.9 million offset by $0.5
million  in  proceeds  from  stock  option  exercises.

     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 million.  As of September 30,
2000,  the  Company  had  sold  $0.7  million  of  receivables  pursuant to this
agreement.  During  March  2000,  the  Company obtained a credit facility from a
bank  with  a  maximum  line  of  credit of approximately $1.0 million, based on
eligible  foreign  accounts  receivable.  At September 30, 2000, the Company had
drawn  down  $1.0  million  of  this  line.

          On October 16, 2000, the Company consummated the sale to Purse Holding
Limited  ("Purse"),  a  British  Virgin  Islands limited company, of two million
shares  of  the Company's common stock for $4.8 million and warrants to purchase
up to three million shares of the Company's common stock.  The sale was effected
pursuant  to  a  Securities Purchase Agreement ("the Agreement") dated August 2,
2000,  between  the  Company  and  Purse.  The  Agreement  was  approved  by the
Company's  shareholders  at  a  special  meeting  held on October 12, 2000.  The
Company  credited  its  $2  million loan, received from Purse on August 3, 2000,
toward  the  $4.8 million purchase price of the two million shares of its common
stock.

     Capital  expenditures  for the 2000 have been scaled back significantly due
to  a  temporary  decline  in  the  market  for  the  Company's  services.

     The  Company believes its current cash balances, the proceeds of the equity
financing  received  on  October  16, 2000, receivable-based financings and cash
provided  by  future operations will be sufficient to meet the Company's working
capital  and  cash  needs through 2001.  However, there can be no assurance that
such  sources  of  funds will be sufficient to meet these future expenses.   The
Company's  need  for  additional  financing will be principally dependent on the
degree  of  future  market  demand  for  the  Company's  services.

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,  2000,  the  Company  did  not  hold  any short-term investments.


                                       12
<PAGE>
                            DA CONSULTING GROUP, INC.

                            PART II-OTHER INFORMATION


ITEM  2.  CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS

     On  October  16,  2000,  the  Company consummated the sale to Purse Holding
Limited  ("Purse"),  a  British  Virgin  Islands limited company, of two million
shares  of  the Company's common stock for $4.8 million and warrants to purchase
up to three million shares of the Company's common stock.  The sale was effected
pursuant  to  a  Securities Purchase Agreement ("the Agreement") dated August 2,
2000,  between  the  Company  and  Purse.  The  Agreement  was  approved  by the
Company's  shareholders  at  a  special  meeting  held on October 12, 2000.  The
Company  credited  its  $2  million loan, received from Purse on August 3, 2000,
toward  the  $4.8 million purchase price of the two million shares of its common
stock.

     In  accordance  with  the  terms  of  the Agreement, the Company issued two
million  shares  of  common  stock at a price of $2.40 per share and warrants to
purchase  (a)  two million shares of common stock, exercisable until October 16,
2003,  at the greater of $3.00 per share or 85% of the market price per share of
common  stock  at  the  time  of  exercise, and (b) one million shares of common
stock,  exercisable  for  the  period  of  time after January 1, 2002, and until
October  16,  2003,  at  $3.00  per  share.

     These  issues  did  not involve an underwriter. The Company considers these
securities  to have been offered and sold in transactions not involving a public
offering and, therefore, to be exempted from the registration under Section 4(2)
of  the  Securities  Act  of  1933,  as  amended.



ITEM  4.   SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

     At  the Company's Special Meeting of Shareholders held on October 12, 2000,
the  shareholders  of  the  Company  voted  on  the  following  matter:

     Approval of the Securities Purchase Agreement ("the Agreement") between the
Company  and  Purse  Holding Limited ("Purse"), a British Virgin Islands limited
company,  dated  August  2,  2000  and  in  connection  with to approve, (i) the
issuance  to  Purse  of two million shares of common stock, (ii) the issuance to
Purse of warrants to purchase up to three million shares of common stock and the
exercisability  thereof, and (iii) approve the Board of Directors representation
rights  granted  to  Purse,  all  as  set  forth  in  the  Agreement.


     The voting results were as follows:

                                          VOTES       VOTES
                        VOTES FOR        AGAINST    ABSTAINED
                        ---------        -------    ---------
                        3,517,036      486,245        74,900



ITEM 6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

     (a)  Exhibits

          Exhibit  27  -     Financial  Data  Schedule


                                       13
<PAGE>
     (b)  Reports  on  Form  8-K

          On  August  4,  2000,  the  Company  reported  that  it  had  signed a
definitive  agreement  relating  to  the  purchase  by a private investor of two
million  shares  of  the Company's common stock for $4.8 million and warrants to
purchase  up  to  three  million  shares  of  the  Company's  common  stock.

          On  October 27, 2000, the Company reported that it had consummated the
sale  to Purse Holding Limited, two million shares of the Company's common stock
for  $4.8  million  and  warrants  to purchase up to three million shares of the
Company's  common  stock.


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 13, 2000          By:       /s/  John E. Mitchell
                                     -------------------------------------
                                                John E. Mitchell
                                      President and Chief Executive Officer

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


                                       14
<PAGE>