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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  JUNE  30,  2001.

                                       OR

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

FOR  THE  TRANSITION  PERIOD  FROM               TO


                        COMMISSION FILE NUMBER: 00-24055

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

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

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

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



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


                                   YES  X  NO

NUMBER OF SHARES OUTSTANDING OF COMMON STOCK AS OF August 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>
Item  1.  Financial  Statements
          Condensed Consolidated Balance Sheets at June 30, 2001
            and December 31, 2000 (unaudited) . . . . . . . . . . . . . . . . . . . .         3
          Condensed Consolidated Statements of Operations for the Three Months ended
            June 30, 2001 and 2000 (unaudited). . . . . . . . . . . . . . . . . . . .         4
          Condensed Consolidated Statements of Operations for the Six Months ended
            June 30, 2001 and 2000 (unaudited). . . . . . . . . . . . . . . . . . . .         4
          Condensed Consolidated Statements of Cash Flows for the Six Months ended
            June 30, 2001 and 2000 (unaudited). . . . . . . . . . . . . . . . . . . .         5
          Notes to Unaudited Condensed Consolidated Financial Statements                      6

Item 2.   Management's Discussion and Analysis of Financial Condition
          and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . .        10

Item 3.   Quantitative and Qualitative Disclosures About Market Risk. . . . . . . . .        15


                                        PART II

                                   OTHER INFORMATION


Item  6.  Exhibits  and  Reports  on  Form  8-K . . . . . . . . . . . . . . . . . . .        15

Signatures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        16
</TABLE>


                                        2
<PAGE>
                          PART I-FINANCIAL INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS

<TABLE>
<CAPTION>
                                       DA CONSULTING GROUP, INC.
                                 CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In thousands, except share amounts)

                                                                            JUNE 30,     DECEMBER 31,
                                                                              2001           2000
                                                                          ------------  --------------
                              ASSETS                                      (Unaudited)
                              ------
<S>                                                                       <C>           <C>
Current Assets:
  Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . .  $       538   $         949
  Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . .        3,653           5,226
  Unbilled revenue . . . . . . . . . . . . . . . . . . . . . . . . . . .          182             206
  Deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . .          663             708
  Prepaid expenses and other current assets. . . . . . . . . . . . . . .          485             440
                                                                          ------------  --------------
      Total current assets . . . . . . . . . . . . . . . . . . . . . . .        5,521           7,529
                                                                          ------------  --------------
  Property and equipment, net. . . . . . . . . . . . . . . . . . . . . .        6,811           8,130
  Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          197             254
  Deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . .        5,885           8,647
  Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . .          370             380
                                                                          ------------  --------------
           Total assets. . . . . . . . . . . . . . . . . . . . . . . . .  $    18,784   $      24,940
                                                                          ============  ==============

                  LIABILITIES AND SHAREHOLDERS' EQUITY
                  ------------------------------------
Current Liabilities:
  Revolving line of credit . . . . . . . . . . . . . . . . . . . . . . .  $     1,016   $         154
  Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . .      1,678           1,840
  Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . .        5,311           6,655
                                                                          ------------  --------------
      Total current liabilities. . . . . . . . . . . . . . . . . . . . .        8,005           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. . . . . . . . . . . . .           85              85
  Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . .       34,039          34,039
  Accumulated deficit. . . . . . . . . . . . . . . . . . . . . . . . . .      (20,379)        (15,082)
  Accumulated other comprehensive loss . . . . . . . . . . . . . . . . .       (1,444)         (1,229)
  Treasury stock, at cost: 153,173 shares. . . . . . . . . . . . . . . .       (1,522)         (1,522)
                                                                          ------------  --------------
      Total shareholders' equity . . . . . . . . . . . . . . . . . . . .       10,779          16,291
                                                                          ------------  --------------
           Total liabilities and shareholders' equity. . . . . . . . . .  $    18,784   $      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   SIX MONTHS ENDED
                                           JUNE 30,            JUNE 30,
                                        2001      2000      2001      2000
                                      --------  --------  --------  ---------
<S>                                   <C>       <C>       <C>       <C>
Revenue. . . . . . . . . . . . . . .  $ 7,607   $ 8,020   $16,143   $ 14,389
Cost of revenue. . . . . . . . . . .    4,572     5,262     9,565     11,190
                                      --------  --------  --------  ---------

  Gross profit . . . . . . . . . . .    3,035     2,758     6,578      3,199

Selling and marketing expense. . . .      987     1,305     2,045      2,723
Development expense. . . . . . . . .      174     1,732       632      2,201
General and administrative expense .    2,999     4,405     6,522     10,523
Restructuring charge . . . . . . . .        -         -         -      3,354
                                      --------  --------  --------  ---------
  Operating loss . . . . . . . . . .   (1,125)   (4,684)   (2,621)   (15,602)
                                      --------  --------  --------  ---------
Interest income, net . . . . . . . .        8         9         2         35
Other expense, net . . . . . . . . .      (47)      (39)      (41)       (39)
                                      --------  --------  --------  ---------

  Total other expense, net . . . . .      (39)      (30)      (39)        (4)
                                      --------  --------  --------  ---------
  Loss before income taxes . . . . .   (1,164)   (4,714)   (2,660)   (15,606)
Provision (benefit) for income taxes    3,185    (1,641)    2,637     (5,064)
                                      --------  --------  --------  ---------
  Net loss . . . . . . . . . . . . .  $(4,349)  $(3,073)  $(5,297)  $(10,542)
                                      ========  ========  ========  =========
Basic loss per share . . . . . . . .  $ (0.52)  $ (0.48)  $ (0.63)  $  (1.64)
Weighted average shares outstanding.    8,419     6,419     8,419      6,419
Diluted loss per share . . . . . . .  $ (0.52)  $ (0.48)  $ (0.63)  $  (1.64)
Weighted average shares outstanding.    8,419     6,419     8,419      6,419
</TABLE>


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


                                        4
<PAGE>
<TABLE>
<CAPTION>
                                      DA CONSULTING GROUP, INC.
                           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                            (In thousands)
                                             (Unaudited)

                                                                                   SIX MONTHS ENDED
                                                                                       JUNE 30,
                                                                                    2001      2000
                                                                                  --------  ---------
<S>                                                                               <C>       <C>
Cash flows from operating activities:
  Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $(5,297)  $(10,542)
  Adjustments to reconcile net loss to net cash used in
    operating activities:
    Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . .    1,232      1,610
    Deferred income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . .    2,807     (5,253)
    Writedown of fixed assets and reserve for leasehold abandonment. . . . . . .        6      1,935
    Changes in operating assets and liabilities:
      Accounts receivable and unbilled revenue . . . . . . . . . . . . . . . . .    1,597      4,909
      Income tax receivable. . . . . . . . . . . . . . . . . . . . . . . . . . .        -      2,259
      Prepaid expenses and other current assets. . . . . . . . . . . . . . . . .      (45)       (84)
      Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       57       (153)
      Accounts payable and accrued expenses. . . . . . . . . . . . . . . . . . .   (1,436)       430
      Deferred income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        -        (67)
              Total adjustments. . . . . . . . . . . . . . . . . . . . . . . . .    4,218      5,586
                                                                                  --------  ---------
              Net cash used in operating activities. . . . . . . . . . . . . . .   (1,079)    (4,956)
                                                                                  --------  ---------
Cash flows from investing activities:
  Proceeds from sale of property and equipment . . . . . . . . . . . . . . . . .       56        227
  Sales of short-term investments. . . . . . . . . . . . . . . . . . . . . . . .        -      2,389
  Purchases of property and equipment. . . . . . . . . . . . . . . . . . . . . .      (35)       (65)
                                                                                  --------  ---------
              Net cash provided by investing activities. . . . . . . . . . . . .       21      2,551
                                                                                  --------  ---------
Cash flows from financing activities:
  Proceeds from revolving line of credit . . . . . . . . . . . . . . . . . . . .      862        340
                                                                                  --------  ---------
              Net cash provided by financing activities. . . . . . . . . . . . .      862        340
                                                                                  --------  ---------
Effect of changes in foreign currency exchange rate on cash and cash equivalents     (215)      (254)
                                                                                  --------  ---------
              Decrease in cash and cash equivalents. . . . . . . . . . . . . . .     (411)    (2,319)
                                                                                  --------  ---------
Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . .      949      3,406
Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . .  $   538   $  1,087
                                                                                  ========  =========
</TABLE>


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


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

(1)  ORGANIZATION  AND  BUSINESS

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

(2)  BASIS  OF  PRESENTATION

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

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

New  Accounting  Pronouncements

     At  June 30, 2001, the Financial Accounting Standard Board issued Statement
of Financial Accounting Standards No. 141, Business Combinations, which requires
that  all  business  combinations be accounted for using the purchase method. In
addition, this Statement requires that intangible assets be recognized as assets
apart  from  goodwill  if  certain  criteria  are met. As the provisions of this
Statement  apply  to  all  business  combinations initiated after June 30, 2001,
management  will  consider the impact of this statement for future combinations.

     At  June 30, 2001, the Financial Accounting Standard Board issued Statement
of  Financial  Accounting  Standards  No.  142  ("SFAS 142"), Goodwill and Other
Intangible  Assets,  which established Standards for reporting acquired goodwill
and  other  intangible assets. This Statement accounts for goodwill based on the
reporting  units  of  the  combined  entity  into  which  an  acquired entity is
integrated.  In  accordance  with  the  statement  goodwill and indefinite lived
intangible  assets will not be amortized, goodwill will be tested for impairment
at  least annually at the reporting unit level, intangible assets deemed to have
an  indefinite  life  will  be  tested for impairment at least annually, and the
amortization  period  of intangible assets with finite lives will not be limited
to  forty  years.  The  provisions  of this Statement are required to be applied
starting  with  fiscal  years beginning after December 15, 2001. The Company has
approximately  $370,000  of  goodwill  included in its balance sheet at June 30,
2001.  Goodwill  amortization  for  the  six  months  ended  June  30,  2001 was
approximately  10,000. Implementation of SFAS 142 by the Company would result in
elimination  of  amortization  of  goodwill  from acquisition under the purchase
method  of  accounting.


                                        6
<PAGE>
(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  June  30,  2001,  the  Company had $6.5 million of deferred tax assets,
primarily  consisting of net operating loss carryforwards, net of a $2.6 million
valuation  allowance attributable to prior years, which was recorded at June 30,
2001.  In  determining  the  amount  of  the  valuation  allowance,  the Company
considered  numerous  factors,  including,  among  other  things,  historical
profitability, estimated future taxable income and the volatility of earnings of
the  industry in which it operates. The primary factors considered in evaluating
the realizability of the deferred tax asset and the level of valuation allowance
were  continued  operating  losses  for  the Americas through June 30, 2001, the
Company's projection of future operating results and the number of years it will
take  to  recover  the tax asset in a difficult market. The provision for income
taxes  of  $2.6  million  for  the  six  months ended June 30, 2001 reflects the
valuation  allowance.

The  remaining  future  benefit  from  utilization  of  net  operating  loss
carryforwards  could  be subject to limitations if significant ownership changes
occur  in the Company. Additionally, the Company's ability to realize the entire
benefit  of  its  deferred tax asset requires the Company achieve certain future
earnings levels prior to the expiration of its net operating loss carryforwards.
To  realize  the net value of the deferred tax assets in the future, the Company
would  need  to  earn  about  $18.2  million  before  the  expiration of the net
operating  loss  carryforwards. Further, the Company could be required to record
additional  valuation allowances for a portion or all of its deferred tax assets
if  market  conditions  deteriorate  further  and  future earnings are below, or
projected  to  be  below,  its  current estimates. The Company will periodically
review  its  deferred  tax  asset  to  determine  if  such  asset is realizable.

The  effective  tax rate for the Americas for the six months ended June 30, 2001
was  0%.  The  effective  tax  rate  of  foreign  operations  was  30%.

(5)     DEBT

Revolving  Line  of  Credit

     In  March  2000,  the  Company  signed  a credit facility agreement with an
available  line  of approximately $1,065,000, based on eligible foreign accounts
receivable.  At  June  30, 2001, the Company had drawn down $1.0 million of this
line.  The  interest  rate  on  this  line of credit was 7.25% at June 30, 2001.

Accounts  Receivable  Financing

     In  March 2000, the Company signed an agreement with a bank, which provides
for  financing  of  eligible  U.S. accounts receivable under a purchase and sale
agreement.  The  maximum  funds available under the agreement is $5 million.  At
June  30, 2001, the Company had sold $348,000 in accounts receivable pursuant to
this  agreement.


                                        7
<PAGE>
(6)     OTHER  CHARGES

     During the three month period ended March 31, 2000, the Company implemented
a  restructuring  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 $1.5 million has been paid through June 30, 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.

Due  to  additional  cost reductions implemented, an estimated liability of $0.6
million  for  future lease payments related to idle property was recorded during
the  second quarter of 2001 and included in general and administrative expenses.
During  2000  and  2001, a  combined  $2.8  million  has been reserved for lease
abandonment,  approximately  $1.4  million  has  been  paid against the reserve.
Approximately  $1.4  million  remained accrued for future lease payments related
to  abandoned  leases  at  June  30,  2001.

(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):

<TABLE>
<CAPTION>
                                   THREE MONTHS ENDED    SIX MONTHS ENDED
                                        JUNE 30            JUNE 30
                                   ------------------  -------------------
                                     2001      2000      2001      2000
                                   --------  --------  --------  ---------
<S>                                <C>       <C>       <C>       <C>
Net loss. . . . . . . . . . . . .  $(4,349)  $(3,073)  $(5,297)  $(10,542)
Other comprehensive income (loss)      116       (90)     (215)      (254)
                                   --------  --------  --------  ---------
Comprehensive loss. . . . . . . .  $(4,233)  $(3,163)  $(5,512)  $(10,796)
                                   ========  ========  ========  =========
</TABLE>

(8)  EARNINGS  PER  SHARE

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


                                        8
<PAGE>
     The  following  table  summarizes the Company's computation of earnings per
share  for  the  three  months  and  six months ended June 30, 2001 and 2000 (in
thousands,  except  per  share  amounts):

<TABLE>
<CAPTION>
                                                         THREE MONTHS ENDED   SIX MONTHS ENDED
                                                             JUNE  30,           JUNE  30,
                                                         ------------------  -------------------
                                                           2001      2000      2001      2000
                                                         --------  --------  --------  ---------
<S>                                                      <C>       <C>       <C>       <C>
Basic loss per share. . . . . . . . . . . . . . . . . .  $ (0.52)  $ (0.48)  $ (0.63)  $  (1.64)
                                                         ========  ========  ========  =========
Net loss. . . . . . . . . . . . . . . . . . . . . . . .  $(4,349)  $(3,073)  $(5,297)  $(10,542)
                                                         ========  ========  ========  =========
Weighted average shares outstanding . . . . . . . . . .    8,419     6,419     8,419      6,419
Computation of diluted earnings per share:
 Common shares issuable under outstanding stock options        -         -         -          -
 Less shares assumed repurchased with proceeds from
 exercise of stock options. . . . . . . . . . . . . . .        -         -         -          -
                                                         --------  --------  --------  ---------
 Adjusted weighted average shares outstanding . . . . .    8,419     6,419     8,419      6,419
                                                         ========  ========  ========  =========
Diluted loss per share. . . . . . . . . . . . . . . . .  $ (0.52)  $ (0.48)  $ (0.63)  $  (1.64)
                                                         ========  ========  ========  =========
</TABLE>

     Approximately  963,000  antidilutive  options  were  excluded  from  the
calculation  of  diluted  earnings per share for the three months and six months
ended  June  30,  2001.

(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 JUNE 30, 2001
  Revenue. . . . . . . . . . . .   $   1,242   $      4,717   $       1,648   $  7,607
  Operating income (loss). . . .      (1,903)           584             194     (1,125)
THREE MONTHS ENDED JUNE 30, 2000
  Revenue. . . . . . . . . . . .   $   2,599   $      2,934   $       2,487   $  8,020
  Operating income (loss). . . .      (4,012)          (852)            180     (4,684)
SIX MONTHS ENDED JUNE 30, 2001
  Revenue. . . . . . . . . . . .   $   3,652   $      9,390   $       3,101   $ 16,143
  Operating income (loss). . . .      (3,287)           621              45     (2,621)
  Total assets . . . . . . . . .       7,220          8,286           3,278     18,784
SIX MONTHS ENDED JUNE 30, 2000
  Revenue. . . . . . . . . . . .   $   4,593   $      6,163   $       3,633   $ 14,389
  Operating loss . . . . . . . .     (12,186)        (2,452)           (964)   (15,602)
  Total assets . . . . . . . . .      10,137          4,848           8,775     23,760
</TABLE>


                                        9
<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; the EMEA
Division,  which  includes Europe; and the Asia Pacific Division, which includes
its  Australia  and  Asia  operations.

RESULTS  OF  OPERATIONS.

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

     Revenue.   Revenue decreased by $0.4 million, or 5.1%, from $8.0 million in
the  second  quarter  of  2000  to  $7.6  million in the second quarter of 2001,
reflecting decreases in volume of professional services and bill rates partially
offset  by  an  increase  in  product revenue from 262,000 in 2000 to 345,000 in
2001.   Revenue  from the Americas Division decreased by 52.2% from $2.6 million
to  $1.2  million;  revenue  from the EMEA Division increased by 60.8% from $2.9
million to $4.7 million; and revenue from the Asia Pacific Division decreased by
33.7%  from  $2.5  million to $1.6 million. The Company ended the second quarter
with  265 total employees, down from 337 employees at the end of the same period
of  the  prior year.  Billable headcount has decreased 24% compared to the first
quarter  2001 and decreased 18% compared to the second quarter of 2000.  Revenue
for  the second quarter of 2001 was 10.9% less than revenue in the first quarter
of 2001 due to the continued weak performance in the United States.  The Company
expects  continued  weakness  in  the  upcoming  quarters.

     Gross  profit.  Gross profit increased by $0.2 million, or 10.0%, from $2.8
million  in  the second quarter of 2000 to $3.0 million in the second quarter of
2001  and  increased as a percent of revenue from 34.4% in the second quarter of
2000  to  39.9%  in the second quarter of 2001. The increase in the gross profit
margin  percentage  is  primarily  attributable  to  improved recovery of travel
costs,  increased  product  sales  offset  partially  by  decreased  bill rates.

     Selling  and  marketing  expense.  Selling  and marketing expense decreased
$0.3  million  or 24.4%, from $1.3 million in the second quarter of 2000 to $1.0
million  in  the  second  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.
Sales and marketing headcount totaled 22 persons at the end of June 30, 2000 and
2001.

     Development  expense.   Development  expense  decreased  $1.5  million,  or
90.0%,  from  $1.7  million in the second quarter of 2000 to $0.2 million in the
second  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,  completed  in  2000.

     The  Company announced it will pursue investors or buyers for its web-based
learning  management system, Dynamic IQ. Revenue will not be negatively impacted
as  the  product  was  recently  introduced  to the marketplace. The cost of the
Dynamic  IQ  has  previously  been  expensed.

     General  and  administrative  expense.  General  and administrative expense
decreased  by $1.4 million, or 31.9%, from $4.4 million in the second quarter of
2000  to  $3.0 million in the second 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 39 at the end of the second quarter
of  2001 compared to 61 at the end of the second quarter of 2000.  Expenses were
reduced  additionally in the second quarter of 2001 by the reversal of incentive
compensation  and  other  employee  related  accruals totaling $0.5 million  and
increased  by  charges  establishing  additional  liabilities  for  idle  leased
facilities  of  $0.6  million.


                                       10
<PAGE>
     Other  charges.  During  the  three  month period ended March 31, 2000, the
Company  implemented  a  restructuring  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 $1.5 million has been paid through
June  30,  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.

Due  to  additional  cost reductions implemented, an estimated liability of $0.6
million  for  future lease payments related to idle property was recorded during
the  second quarter of 2001 and included in general and administrative expenses.
During  2000  and  2001,  a combined  $2.8  million  has been reserved for lease
abandonment,  approximately  $1.4  million  has  been  paid against the reserve.
Approximately  $1.4  million  remained accrued for future lease payments related
to  abandoned  leases  at  June  30,  2001.

     Operating  loss.  Operating  loss decreased from $4.7 million in the second
quarter  of  2000  to an operating loss of $1.1 million in the second quarter of
2001.  This  decrease  resulted  from improved gross margins, coupled with lower
operating  expenses  partially offset by a decline in revenue as compared to the
second  quarter  of  2000.

     Provision  for income taxes. At June 30, 2001, the Company had $6.5 million
of  deferred  tax  assets,  primarily  consisting  of  net  operating  loss
carryforwards,  net  of a $2.6 million valuation allowance attributable to prior
years,  which  was  recorded  at June 30, 2001. In determining the amount of the
valuation  allowance,  the Company considered numerous factors, including, among
other  things, historical profitability, estimated future taxable income and the
volatility of earnings of the industry in which it operates. The primary factors
considered  in  evaluating  the  realizability of the deferred tax asset and the
level  of  valuation  allowance were continued operating losses for the Americas
through  June 30, 2001, the Company's projection of future operating results and
the number of years it will take to recover the tax asset in a difficult market.
The  provision  for income taxes of $3.2 million for the three months ended June
30,  2001  reflects  the  valuation  allowance.

The  remaining  future  benefit  from  utilization  of  net  operating  loss
carryforwards  could  be subject to limitations if significant ownership changes
occur  in the Company. Additionally, the Company's ability to realize the entire
benefit  of  its  deferred tax asset requires the Company achieve certain future
earnings levels prior to the expiration of its net operating loss carryforwards.
To  realize  the net value of the deferred tax assets in the future, the Company
would  need  to  earn  about  $18.2  million  before  the  expiration of the net
operating  loss  carryforwards. Further, the Company could be required to record
additional  valuation allowances for a portion or all of its deferred tax assets
if  market  conditions  deteriorate  further  and  future earnings are below, or
projected  to  be  below,  its  current estimates. The Company will periodically
review  its  deferred  tax  asset  to  determine  if  such  asset is realizable.

The effective tax rate for the Americas for the three months ended June 30, 2001
was  0%.  The  effective  tax  rate  of  foreign  operations  was  30%.

     Net  loss.  The  Company's  net  loss  increased  by $1.2 million from $3.1
million  in  the  second  quarter  of  2000 to a net loss of $4.3 million in the
second  quarter  of  2001  for reasons discussed above. Loss per share increased
from  $0.48  in  the  second quarter of 2000 to a loss per share of $0.52 in the
second  quarter  of  2001.


                                       11
<PAGE>
SIX  MONTHS  ENDED  JUNE  30,  2001  COMPARED  TO SIX MONTHS ENDED JUNE 30, 2000
     Revenue.   Revenue  increased by $1.7 million, or 12.2%, from $14.4 million
for the six months ended June 30, 2000 to $16.1 million for the first six months
ended  June  30,  2001,  reflecting  increases  in  product  sales,  volume  of
professional  services  and  bill  rates  in the first quarter of 2001 partially
offset  by  revenue  and  bill  rate  declines  in  the  second quarter of 2001.
Revenue  from the Americas Division decreased by 20.5% from $4.6 million to $3.7
million;  revenue from the EMEA Division increased by 52.4% from $6.2 million to
$9.4 million; and revenue from the Asia Pacific Division decreased by 14.6% from
$3.6  million  to $3.1 million.   Product revenue increased from $293,000 in the
first  half  of  2000  to  $690,000  in  the  first  half  of  2001.

     Gross profit.  Gross profit increased by $3.4 million, or 105.6%, from $3.2
million  for  the  six  months  ended  June 30, 2000 to $6.6 million for the six
months  ended  June 30, 2001 and increased as a percent of revenue from 22.2% in
2000  to  40.7%  in  2001. The increase in the gross profit margin percentage is
primarily  attributable  to increased product sales, staff utilization, improved
recovery  of  travel  costs  and  increased  bill  rates.

     Selling  and  marketing  expense.  Selling  and marketing expense decreased
$0.7  million or 24.9%, from $2.7 million for the six months ended June 30, 2000
to $2.0 million for the same period 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  $1.6  million,  or
71.3%,  from $2.2 million for the six months ended June 30, 2000 to $0.6 million
for  the  same period 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,  completed  in  2000.

     General  and  administrative  expense.  General  and administrative expense
decreased by $4.0 million, or 38.0%, from $10.5 million for the six months ended
June  30,  2000  to  $6.5  million  for the same period in 2001. The decrease in
expense  is  due  primarily to a reduction in headcount in the areas of finance,
administration  and  human  resources as a result of the cost containment plans.
Expenses were reduced additionally in the second quarter of 2001 by the reversal
of  incentive  compensation  and  other  employee related accruals totaling $0.5
million  and  increased  by charges establishing additional liabilities for idle
leased  facilities  of  $0.6  million.

     Other  charges.  During  the  three  month period ended March 31, 2000, the
Company  implemented  a  restructuring  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 $1.5 million has been paid through
June  30,  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.

Due  to  additional  cost reductions implemented, an estimated liability of $0.6
million  for  future lease payments related to idle property was recorded during
the  second quarter of 2001 and included in general and administrative expenses.
During  2000  and  2001,  a  combined  $2.8  million has been reserved for lease
abandonment,  approximately  $1.4  million  has  been  paid against the reserve.
Approximately  $1.4  million  remained accrued for future lease payments related
to  abandoned  leases  at  June  30,  2001.


                                       12
<PAGE>
     Operating  loss.  Operating  loss  decreased from $15.6 million for the six
months  ended  June  30,  2000 to an operating loss of $2.6 million for the same
period  of 2001.  This decrease resulted from increases in revenue and resulting
improved gross margins, coupled with lower operating expenses as compared to the
first  six  months  of  2000.

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

The  remaining  future  benefit  from  utilization  of  net  operating  loss
carryforwards  could  be subject to limitations if significant ownership changes
occur  in the Company. Additionally, the Company's ability to realize the entire
benefit  of  its  deferred tax asset requires the Company achieve certain future
earnings levels prior to the expiration of its net operating loss carryforwards.
To  realize  the net value of the deferred tax assets in the future, the Company
would  need  to  earn  about  $18.2  million  before  the  expiration of the net
operating  loss  carryforwards. Further, the Company could be required to record
additional  valuation allowances for a portion or all of its deferred tax assets
if  market  conditions  deteriorate  further  and  future earnings are below, or
projected  to  be  below,  its  current estimates. The Company will periodically
review  its  deferred  tax  asset  to  determine  if  such  asset is realizable.

The  effective  tax rate for the Americas for the six months ended June 30, 2001
was  0%.  The  effective  tax  rate  of  foreign  operations  was  30%.

     Net  loss.  The  Company's  net  loss  decreased by $5.2 million from $10.5
million for the six months ended June 30, 2000 to a net loss of $5.3 million for
the  six  months  ended  June 30, 2001 for the reasons discussed above. Loss per
share  decreased  from $1.64 for the six months ended June 3, 2000 to a loss per
share of $0.63 for the same period of 2001 due partially to the number of shares
outstanding  and  reasons  discussed  above.

LIQUIDITY  AND  CAPITAL  RESOURCES

     Since  its  inception, the Company has historically financed its operations
and  growth  with  cash  flows  from  investment  by  stockholders,  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 June 30, 2001,
compared  to  $0.9  million at December 31, 2000.  The Company's working capital
deficit  was  $2.5  million  at  June  30, 2001 and $1.1 million at December 31,
2000.

     The  Company's  operating  activities required cash of $1.1 million for the
six  months ended June 30, 2001, compared to $5.0 million for the same period in
2000.  The  decrease  in cash used in operations resulted primarily from reduced
operating  losses  incurred  in  of  2001.

     Investing  activities provided cash of $21,000 in the six months ended June
30, 2001, compared to cash provided of $2.6 million for the same period in 2000.
During  the  same  period  of  2000,  the  Company  had  net sales of short-term
investments  of  $2.4  million.

     Financing activities provided cash of $0.9 million for the six months ended
June 30, 2001 as a result of drawdowns on a short-term line of credit during the
quarter  compared  to  $340,000  during the during the six months ended June 30,
2000.

     The  Company  has an agreement with a bank, which provides for financing of
eligible  U.S.  accounts  receivable  under  a purchase and sale agreement.  The
maximum funds available under this agreement is $5.0 million.  At June 30, 2001,
the  Company  had  sold  $348,000 of receivables pursuant to this agreement.  In
March  2000,  the  Company  obtained  a  credit  facility  from  a bank  with  a
maximum  line  of  credit of approximately $1,065,000 based on eligible  foreign
accounts  receivable.  At  June 30, 2001, the Company had borrowed  $1.0 million
against  this  line.


                                       13
<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.

New  Accounting  Pronouncements

     At  June 30, 2001, the Financial Accounting Standard Board issued Statement
of Financial Accounting Standards No. 141, Business Combinations, which requires
that  all  business  combinations be accounted for using the purchase method. In
addition, this Statement requires that intangible assets be recognized as assets
apart  from  goodwill  if  certain  criteria  are met. As the provisions of this
Statement  apply  to  all  business  combinations initiated after June 30, 2001,
Management  will  consider the impact of this statement for future combinations.

     At  June 30, 2001, the Financial Accounting Standard Board issued Statement
of  Financial  Accounting  Standards  No.  142  ("SFAS 142"), Goodwill and Other
Intangible  Assets,  which established Standards for reporting acquired goodwill
and  other  intangible assets. This Statement accounts for goodwill based on the
reporting  units  of  the  combined  entity  into  which  an  acquired entity is
integrated.  In  accordance  with  the  statement  goodwill and indefinite lived
intangible  assets will not be amortized, goodwill will be tested for impairment
at  least annually at the reporting unit level, intangible assets deemed to have
an  indefinite  life  will  be  tested for impairment at least annually, and the
amortization  period  of intangible assets with finite lives will not be limited
to  forty  years.  The  provisions  of this Statement are required to be applied
starting  with  fiscal  years beginning after December 15, 2001. The Company has
approximately  $370,000  of  goodwill  included in its balance sheet at June 30,
2001.  Goodwill  amortization  for  the  six  months  ended  June  30,  2001 was
approximately $10,000. Implementation of SFAS 142 by the Company would result in
elimination  of  amortization  of  goodwill  from acquisition under the purchase
method  of  accounting.

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.


                                       14
<PAGE>
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 June
30,  2001,  the  Company  did  not  hold  any  short-term  investments.

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

                            DA CONSULTING GROUP, INC.

                            PART II-OTHER INFORMATION


ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K
     (a)  Exhibits
          None.
     (b)  Reports  on  Form  8-K
          No  reports  on  Form 8-K were filed during the reporting period
          ended June 30,  2001.


                                       15
<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:  August 14, 2001         By:           /s/ Virginia Pierpont
                                    --------------------------------------------
                                                Virginia Pierpont
                                    Chairman and Interim Chief Executive Officer

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


                                       16
<PAGE>