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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  MARCH  31,  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)

                           ONE EXETER PLAZA, 4TH FLOOR
                          BOSTON, MASSACHUSETTS  02116
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (617) 375-2800



     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 May 14, 2001 - - 8,418,604
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                                        1
<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 at March 31, 2001
               and December 31, 2000                                                            3
            Condensed Consolidated Statements of Operations for the Three Months ended
               March 31, 2001 and 2000                                                          4
            Condensed Consolidated Statement of Cash Flows for the Three Months ended
               March 31, 2001 and 2000                                                          5
            Notes to Unaudited Condensed Consolidated Financial Statements                      6

Item 2.     Management's Discussion and Analysis of Financial Condition
            and Results of Operations                                                           8

Item 3.     Quantitative and Qualitative Disclosures About Market Risk                         11



                                              PART II
                                         OTHER INFORMATION


Item 6.     Exhibits and Reports on Form 8-K                                                   11

Signatures
</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)


                                                                               MARCH 31,        DECEMBER 31,
                                                                                 2001               2000
                                                                          -------------------  --------------
                              ASSETS                                          (Unaudited)
                              ------
<S>                                                                       <C>                  <C>
Current Assets:
  Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . .  $              488   $         949

  Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . .               3,744           5,226
  Unbilled revenue . . . . . . . . . . . . . . . . . . . . . . . . . . .                 421             206
  Deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . .                 653             708
  Prepaid expenses and other current assets. . . . . . . . . . . . . . .                 615             440
                                                                          -------------------  --------------
      Total current assets . . . . . . . . . . . . . . . . . . . . . . .               5,921           7,529
                                                                          -------------------  --------------
  Property and equipment, net. . . . . . . . . . . . . . . . . . . . . .               7,471           8,130
  Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 260             254
  Deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . .               9,043           8,647
  Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . .                 375             380
                                                                          -------------------  --------------
           Total assets .. . . . . . . . . . . . . . . . . . . . . . . .  $           23,070   $      24,940
                                                                          ===================  ==============

                LIABILITIES AND SHAREHOLDERS' EQUITY
                ------------------------------------
Current Liabilities:
  Revolving line of credit . . . . . . . . . . . . . . . . . . . . . . .  $              463   $         154
  Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . .               1,842           1,840
  Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . .               5,753           6,655
                                                                          -------------------  --------------
      Total current liabilities. . . . . . . . . . . . . . . . . . . . .               8,058           8,649
                                                                          -------------------  --------------

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 at March 31, 2001 and
    December 31, 2000. . . . . . . . . . . . . . . . . . . . . . . . . .                  85              85
  Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . .              34,039          34,039
  Accumulated deficit. . . . . . . . . . . . . . . . . . . . . . . . . .             (16,030)        (15,082)
  Accumulated other comprehensive loss . . . . . . . . . . . . . . . . .              (1,560)         (1,229)
  Treasury stock, at cost: 153,173 shares at March 31, 2001 and
    December 31, 2000. . . . . . . . . . . . . . . . . . . . . . . . . .              (1,522)         (1,522)
                                                                          -------------------  --------------
      Total shareholders' equity . . . . . . . . . . . . . . . . . . . .              15,012          16,291
                                                                          -------------------  --------------
           Total liabilities and shareholders' equity. . . . . . . . . .  $           23,070   $      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
                                          MARCH 31,
                                       2001      2000
                                     --------  ---------
<S>                                  <C>       <C>
Revenue . . . . . . . . . . . . . .  $ 8,536   $  6,369
Cost of revenue . . . . . . . . . .    4,993      5,928
                                     --------  ---------

  Gross profit. . . . . . . . . . .    3,543        441

Selling and marketing expense . . .    1,058      1,418
Development expense . . . . . . . .      458        469
General and administrative expense.    3,523      6,118
Restructuring charge. . . . . . . .        -      3,354
                                     --------  ---------

  Operating loss. . . . . . . . . .   (1,496)   (10,918)
                                     --------  ---------
Interest (expense) income, net. . .       (6)        26
Other income, net . . . . . . . . .        6          -
                                     --------  ---------

  Total other income, net . . . . .        -         26
                                     --------  ---------

  Loss before taxes . . . . . . . .   (1,496)   (10,892)
Benefit for income taxes. . . . . .     (548)    (3,423)
                                     --------  ---------

       Net loss . . . . . . . . . .  $  (948)  $ (7,469)
                                     ========  =========

Basic loss per share. . . . . . . .  $ (0.11)  $  (1.16)
Weighted average shares outstanding    8,419      6,418

Diluted loss per share. . . . . . .  $ (0.11)  $  (1.16)
Weighted average shares outstanding    8,419      6,418
</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)


                                                                                 THREE MONTHS ENDED
                                                                                      MARCH 31,
                                                                                   2001      2000
                                                                                  -------  --------
<S>                                                                               <C>      <C>
Cash flows from operating activities:
  Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ (948)  $(7,469)
  Adjustments to reconcile net loss to net cash used in
   operating activities:
    Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . .     623       852
    Deferred income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . .    (341)   (3,371)
    Writedown of fixed assets and reserve for leasehold abandonment. . . . . . .       -     1,935
    Changes in operating assets and liabilities:
      Accounts receivable and unbilled revenue . . . . . . . . . . . . . . . . .   1,267     3,431
      Income tax receivable. . . . . . . . . . . . . . . . . . . . . . . . . . .       -       837
      Prepaid expenses and other current assets. . . . . . . . . . . . . . . . .    (175)     (138)
      Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (6)     (151)
      Accounts payable and accrued expenses. . . . . . . . . . . . . . . . . . .    (824)    1,072
      Deferred income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       -       (45)
                                                                                  -------  --------
        Total adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . .     544     4,422
                                                                                  -------  --------

              Net cash used in operating activities. . . . . . . . . . . . . . .    (404)   (3,047)
                                                                                  -------  --------

Cash flows from investing activities:
  Sales of short-term investments. . . . . . . . . . . . . . . . . . . . . . . .       -     2,389
  Purchases of property and equipment. . . . . . . . . . . . . . . . . . . . . .     (35)      (61)
                                                                                  -------  --------

      Net cash (used in) provided by investing activities. . . . . . . . . . . .     (35)    2,328
                                                                                  -------  --------

Cash flows from financing activities:
  Proceeds from revolving line of credit . . . . . . . . . . . . . . . . . . . .     309       489
                                                                                  -------  --------

      Net cash provided by financing activities. . . . . . . . . . . . . . . . .     309       489
                                                                                  -------  --------

Effect of changes in foreign currency exchange rate on cash and cash equivalents    (331)     (164)
                                                                                  -------  --------

      Decrease in cash and cash equivalents. . . . . . . . . . . . . . . . . . .    (461)     (394)
Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . .     949     3,406
                                                                                  -------  --------

Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . .  $  488   $ 3,012
                                                                                  =======  ========
</TABLE>


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

(1)     ORGANIZATION  AND  BUSINESS

     DA  Consulting  Group,  Inc. ("DACG") 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.

(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
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  March  31,  2001,  the  Company had $9.7 million of deferred tax assets
primarily  consisting  of  net  operating  loss  carryforwards. The benefit from
utilization  of net operating loss carryforwards could be subject to limitations
if  significant ownership changes occur in the Company. The Company's ability to
realize  the  entire benefit of its deferred tax asset requires that the Company
achieve  certain  future  earnings  levels  prior  to  the expiration of its net
operating loss carryforwards. To realize the full value of the tax assets in the
future,  the  Company  would need to earn approximately $27.0 million before the
expiration  of  the  net  operating  loss  carryforwards.  The  Company could be
required  to  record  a valuation allowance for a portion or all of its deferred
tax  assets  if  market conditions deteriorate and future earnings are below, or
projected  to  be below, its current estimates. The Company continues to believe
it will generate sufficient taxable income to ensure realization of existing and
available  tax  benefits, accordingly, no valuation allowance has been provided.


                                        6
<PAGE>
(5)     DEBT

Revolving  Line  of  Credit

     In  March  2000,  the  Company  signed  a credit facility agreement with an
available  line  of  approximately  $750,000, based on eligible foreign accounts
receivable.  At  March  31,  2001,  the  Company had drawn down $463,000 of this
line.  The  interest  rate  on  this line of credit was 7.75% at March 31, 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
March 31, 2001, the Company had sold $558,000 in accounts receivable pursuant to
this  agreement.

(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 of 2000. The
Company  reserved approximately $1.5 million expense attributable to involuntary
employee  termination  benefits  during  the  first  quarter  2000,  of  which
approximately  $1.4  million  has been paid through March 31, 2001. In addition,
the  Company  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 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.  Of the
$2.2 million reserved for lease abandonment, approximately $1.1 million has been
paid  against  the  reserve.  At  March  31, 2001, the Company believes that the
remaining  provision  is adequate to cover the future costs attributable to this
plan.  At  March  31,  2001,  an  accrual  of  approximately  $0.1  million  for
severance  pay remained related to severance contracts being paid over a 5-month
period.  In  addition,  approximately  $1.1  million remained accrued for future
lease  payments  related  to  abandoned  leases.

(7)  COMPREHENSIVE  INCOME

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


                          THREE MONTHS ENDED
                               MARCH 31,
                             2001      2000
                          --------  --------
Net loss . . . . . . . .  $  (948)  $(7,469)
Other comprehensive loss     (331)     (164)
                          --------  --------
Comprehensive loss . . .  $(1,279)  $(7,633)
                          ========  ========


                                        7
<PAGE>
(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  quarter ended March 31, 2001 and 2000 (in thousands, except per
share  amounts):

<TABLE>
<CAPTION>
                                                         THREE MONTHS ENDED
                                                              MARCH 31,
                                                           2001      2000
                                                          -------  --------
<S>                                                       <C>      <C>
Basic loss per share . . . . . . . . . . . . . . . . . .  $(0.11)  $ (1.16)
                                                          =======  ========
Net loss . . . . . . . . . . . . . . . . . . . . . . . .  $ (948)  $(7,469)
                                                          =======  ========
Weighted average shares outstanding. . . . . . . . . . .   8,419     6,418
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     6,418
                                                          =======  ========
Diluted loss per share . . . . . . . . . . . . . . . . .  $(0.11)  $ (1.16)
                                                          =======  ========
</TABLE>

     Approximately  1,329,000  antidilutive  options  and 3,000,000 antidilutive
warrants  were  excluded  from the calculation of diluted earnings per share for
the  three  months  ended  March  31,  2001.  Approximately 963,000 antidilutive
options were excluded from the calculation of diluted earnings per share for the
three  months  ended  March  31,  2000.


(9)     GEOGRAPHIC  FINANCIAL  DATA

     Revenue  from  the  Company's  operations  are 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 MARCH 31, 2001
       Revenue . . . . . . . . . .  $   2,410   $      4,673   $       1,453   $  8,536
       Operating income (loss) . .     (1,384)            38            (150)    (1,496)
THREE MONTHS ENDED MARCH 31, 2000
       Revenue . . . . . . . . . .      1,993          3,229           1,147      6,369
       Operating loss. . . . . . .     (8,174)        (1,600)         (1,144)   (10,918)
</TABLE>

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

OVERVIEW

     DA  Consulting  Group,  Inc.  ("DACG") 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.

                                        8
<PAGE>
     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 MARCH 31, 2001 COMPARED TO THREE MONTHS ENDED MARCH 31, 2000

     Revenue.   Revenue  increased  by $2.1 million, or 34.0%, from $6.4 million
in  the  first  quarter  of  2000  to $8.5 million in the first quarter of 2001,
reflecting  increases in product sales, volume of professional services and bill
rates.   Revenue from the Americas Division increased by 20.9% from $2.0 million
to  $2.4  million;  revenue  from the EMEA Division increased by 44.7% from $3.2
million to $4.7 million; and revenue from the Asia Pacific Division increased by
26.7%  from  $1.1  million  to $1.5 million. The Company ended the first quarter
with  337 total employees, down from 402 employees at the end of the same period
of the prior year.  Billable headcount has increased 24% over the fourth quarter
2000  and  decreased 11% compared to the first quarter of 2000.  Revenue for the
first quarter of 2001 was 1% more than revenue in the fourth quarter of 2000 due
to the continued improvement in the market for complex computer software and the
Company  expects  continued  improvement  in  the  upcoming  quarters.

     Gross  profit.  Gross  profit increased by $3.1 million, or 700%, from $0.4
million  in  the  first  quarter of 2000 to $3.5 million in the first quarter of
2001  and  increased  as  a percent of revenue from 6.9% in the first quarter of
2000  to  41.5%  in  the first quarter of 2001. The increase in the gross profit
margin  percentage  is  primarily  attributable  to  increased product sales and
increased  bill  rates.

     Selling  and  marketing  expense.  Selling  and marketing expense decreased
$0.3  million  or  25.4%, from $1.4 million in the first quarter of 2000 to $1.1
million  in  the  first  quarter  of  2001.  The  decrease is the result of cost
reduction  measures taken in the first quarter of 2000 and moving to a localized
marketing and telesales effort in support of a team of account managers in 2001.

     Development  expense.  Development expense decreased $11,000, or 2.3%, from
$469,000  in the first quarter of 2000 to $458,000 in the first quarter of 2001.
Primary  expenditures  for  development  in  the  first quarter of 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.  Primary
expenditures  in  the  first  quarter of 2001 were for Dynamic IQ and a CD Based
testing  product  named  Mind  Museum.

     General  and  administrative  expense.  General  and administrative expense
decreased  by  $2.6 million, or 42.4%, from $6.1 million in the first quarter of
2000  to  $3.5  million in the first quarter of 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.
General and administrative personnel total 40 at the end of the first quarter of
2001  compared  to  69  at  the  end  of  the  first  quarter  of  2000.

     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 of 2000. The
Company  recognized  approximately  $1.5  million  expense  attributable  to
involuntary  employee  termination  benefits  during  the first quarter 2000, of
which  approximately  $1.4  million  has  been  paid  through March 31, 2001. In
addition,  the  Company  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
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.  Of the $2.2 million reserved for lease abandonment, approximately $1.1
million  has  been  paid  against  the  reserve.  At March 31, 2001, the Company
believes  that  the  remaining  provision  is adequate to cover the future costs
attributable to this plan.  At March 31, 2001, an accrual of approximately  $0.1
million  for  severance  pay  remained related to severance contracts being paid
over  a  5-month  period.  In  addition,  approximately  $1.1  million  remained
accrued  for  future  lease  payments  related  to  abandoned  leases.


                                        9
<PAGE>
     Operating  loss.  Operating  loss decreased from $10.9 million in the first
quarter  of  2000  to  an operating loss of $1.5 million in the first quarter of
2001.  This  decrease  resulted from increases in revenue and resulting improved
gross  margins,  coupled  with lower operating expenses as compared to the first
quarter  of  2000.

     Benefit  for  income  taxes.  The Company's effective tax rate was 36.6% in
the  first  quarter of 2001 compared to 31.4% in the first quarter of 2000.  The
lower  effective  rate  for  the  first  quarter  of  2000  is  the  result  of
nondeductible  operating  losses  in  various  countries.

     At  March  31,  2001,  the  Company had $9.7 million of deferred tax assets
primarily  consisting  of  net  operating  loss  carryforwards. The benefit from
utilization  of net operating loss carryforwards could be subject to limitations
if  significant ownership changes occur in the Company. The Company's ability to
realize  the  entire benefit of its deferred tax asset requires that the Company
achieve  certain  future  earnings  levels  prior  to  the expiration of its net
operating loss carryforwards. To realize the full value of the tax assets in the
future,  the  Company  would need to earn approximately $27.0 million before the
expiration  of  the  net  operating  loss  carryforwards.  The  Company could be
required  to  record  a valuation allowance for a portion or all of its deferred
tax  assets  if  market conditions deteriorate and future earnings are below, or
projected  to  be below, its current estimates. The Company continues to believe
it will generate sufficient taxable income to ensure realization of existing and
available  tax  benefits, accordingly, no valuation allowance has been provided.


     Net  loss.  The  Company's  net  loss  decreased  by $6.6 million from $7.5
million  in the first quarter of 2000 to a net loss of $0.9 million in the first
quarter of 2001 for reasons discussed above. Loss per share decreased from $1.16
in  the  first quarter of 2000 to a loss per share of $0.11 in the first quarter
of  2001.

LIQUIDITY  AND  CAPITAL  RESOURCES

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

     The  Company's  cash  and  cash  equivalents were $0.5 million at March 31,
2001,  compared  to  $0.9  million  at December 31, 2000.  The Company's working
capital  deficit was $2.1 million at March 31, 2001 and $1.1 million at December
31,  2000.

     The  Company's  operating  activities required cash of $0.4 million for the
three  months ended March 31, 2001, compared to $3.0 million for the same period
in  2000.  The  decrease  in  cash  used  in  operations resulted primarily from
reduced  operating  losses  incurred  in  the  first  quarter  of  2001.

     Investing  activities  required  cash  of $35,000 in the three months ended
March 31, 2001, compared to cash provided of $2.3 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 $309,000 for the three months ended
March  31,  2001  as a result of drawdowns on a short-term line of credit during
the  quarter  compared to $489,000 during the three months ended March 31, 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 March 31, 2001,
the  Company  had  sold  $558,000  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 $750,000, based on eligible foreign accounts
receivable.  At  March  31, 2001, the Company had borrowed $463,000 against this
line.


                                       10
<PAGE>
     Capital  expenditures  for  2001  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.

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
March  31,  2001,  the  Company  did  not  hold  any  short-term  investments.

     Currency  exchange  rate fluctuations between the U.S. dollar and the Euro,
British pound, 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 upon the Company's financial
condition.



                            DA CONSULTING GROUP, INC.

                            PART II-OTHER INFORMATION


ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

     (a)  Reports  on  Form  8-K

          No  reports  on  Form 8-K were filed during the quarter ended
          March  31,  2001.


                                       11
<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: May 15, 2001          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)



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