UNITED STATES
                       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 0-21529


                          GIGA INFORMATION GROUP, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


               Delaware                                    06-1422860
        -----------------------                          ---------------
    (State or other jurisdiction of                     (I.R.S. Employer
     incorporation or organization)                    Identification No.)


                                 139 MAIN STREET
                               CAMBRIDGE, MA 02142
                                 (617) 949-4900
                   -------------------------------------------
                   (Address, including zip code, and telephone
                    number, including area code, of principal
                               executive offices)


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. [X] Yes  [ ] No


As of May 10, 2001, there were 10,511,756 shares of Common Stock, $.001 par
value, of the registrant outstanding.


<PAGE>
                          GIGA INFORMATION GROUP, INC.
                          QUARTERLY REPORT ON FORM 10-Q
                       FOR THE PERIOD ENDED MARCH 31, 2001


                                      INDEX
<TABLE>
<CAPTION>
                                                                                                            PAGE
PART I - FINANCIAL INFORMATION
<S>                                                                                                        <C>
           Item 1.   Financial Statements

                     Condensed Consolidated Statements of Operations for the three months
                               ended March 31, 2001 (unaudited) and March 31, 2000 (unaudited)               3.

                     Condensed Consolidated Balance Sheets at March 31, 2001 (unaudited)
                               and December 31, 2000                                                         4.

                     Condensed Consolidated Statements of Cash Flows for the three months
                               ended March 31, 2001 (unaudited) and March 31, 2000 (unaudited)               5.

                     Notes to Condensed Consolidated Financial Statements (unaudited)                        6.

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

           Item 3.   Quantitative and Qualitative Disclosures About Market Risk                             18.


PART II - OTHER INFORMATION


                     Item 6.  Exhibits and Reports on Form 8-K                                              19.


SIGNATURE PAGE                                                                                              20.


EXHIBIT INDEX                                                                                               21.

</TABLE>





                                       2
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS


                          GIGA INFORMATION GROUP, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
           (unaudited, in thousands, except share and per share data)

<TABLE>
<CAPTION>
                                                                         THREE MONTHS ENDED
                                                                              MARCH 31,
                                                                        2001             2000
                                                                  ----------------  ---------------
<S>                                                               <C>               <C>
Revenues:
    Research, advisory and consulting                              $        16,472  $        14,877
    Other, principally events                                                  998            1,962
                                                                  ----------------  ---------------

    Total revenues                                                          17,470           16,839

Costs and expenses:
    Cost of services                                                         7,132            7,229
    Sales and marketing                                                      7,568            7,739
    Research and development                                                   216              646
    General and administrative                                               2,119            2,692
    Depreciation and amortization                                              848              645
                                                                  ----------------  ---------------

    Total costs and expenses                                                17,883           18,951
                                                                  ----------------  ---------------

Loss from operations                                                          (413)          (2,112)
                                                                  ----------------  ---------------

Interest income                                                                 30              107
Interest expense                                                               (18)             (23)
Foreign exchange loss                                                          (84)            (463)
                                                                  ----------------  ---------------

    Loss from operations before income taxes                                  (485)          (2,491)
Income tax benefit                                                             (20)             (27)
                                                                  ----------------  ---------------

Net loss                                                           $          (465) $        (2,464)
                                                                  ================  ===============

Results per common share:
    Historical -  basic and diluted:
       Net loss                                                    $         (0.04) $         (0.24)
                                                                  ================  ===============
       Weighted average number of shares used to compute
             Results per common share                                   10,482,925       10,106,752
                                                                  ================  ===============
</TABLE>

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


                                       3
<PAGE>
                          GIGA INFORMATION GROUP, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                 (in thousands, except share and per share data)

<TABLE>
<CAPTION>
                                                                                             MARCH 31,          DECEMBER 31,
                                                                                               2001                2000
                                                                                         -----------------  -------------------
                                                                                            (UNAUDITED)
<S>                                                                                      <C>                <C>
                                     ASSETS
Current assets:
    Cash and cash equivalents                                                            $           1,360  $             1,640
    Restricted cash                                                                                    663                  620
    Trade accounts receivable, net of allowance for uncollectible accounts of $372
       and $388 at March 31, 2001 and December 31, 2000, respectively                               16,638               20,083
    Pledged accounts receivable                                                                        -                  1,717
    Unbilled accounts receivable                                                                     6,324                6,466
    Prepaid expenses and other current assets                                                        6,081                6,052
                                                                                         -----------------  -------------------
       Total current assets                                                                         31,066               36,578
Property and equipment, net                                                                          7,177                6,375
Restricted cash                                                                                         14                   61
Other assets                                                                                         1,276                1,270
                                                                                         -----------------  -------------------
       Total assets                                                                      $          39,533  $            44,284
                                                                                         =================  ===================

                      LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
    Accounts payable                                                                     $           3,876  $             4,337
    Deferred revenues                                                                               39,211               39,234
    Accrued expenses and other current liabilities                                                   6,083                9,669
    Current portion of capitalized lease obligations                                                   307                  137
    Short-term borrowings                                                                              -                  1,352
                                                                                         -----------------  -------------------
       Total current liabilities                                                                    49,477               54,729
Capitalized lease obligations, net of current portion                                                  500                  216
Deferred revenues                                                                                    1,373                  881
                                                                                         -----------------  -------------------
       Total liabilities                                                                            51,350               55,826

Stockholders' deficit:
Preferred Stock, $.001 par value; 5,000,000 shares authorized at March 31, 2001
    and December 31, 2000, no shares issued and outstanding at March 31, 2001
    and December 31, 2000                                                                              -                    -
Common Stock, $.001 par value: 60,000,000 shares authorized at March 31, 2001
    and December 31, 2000, 10,492,562 and 10,464,741 shares issued and
    outstanding at March 31, 2001 and December 31, 2000, respectively                                   10                   10
Additional paid-in capital                                                                          82,941               82,896
Deferred compensation                                                                                 (513)                (569)
Accumulated deficit                                                                                (95,682)             (95,217)
Accumulated other comprehensive income                                                               1,427                1,338
                                                                                         -----------------  -------------------
       Total stockholders' deficit                                                                 (11,817)             (11,542)
                                                                                         -----------------  -------------------
       Total liabilities and stockholders' deficit                                       $          39,533  $            44,284
                                                                                         =================  ===================
</TABLE>
          The accompanying unaudited notes are an integral part of the
                  condensed consolidated financial statements.


                                       4
<PAGE>
                          GIGA INFORMATION GROUP, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (unaudited, in thousands)

<TABLE>
<CAPTION>
                                                                                                 THREE MONTHS ENDED
                                                                                                       MARCH 31,
                                                                                          -------------------------------
                                                                                                2001           2000
                                                                                          --------------  ---------------
<S>                                                                                       <C>             <C>
Cash flows from operating activities:
    Net loss                                                                               $       (465)  $    (2,464)
    Adjustments to reconcile net loss to net cash provided by operating activities:
       Depreciation and amortization                                                                848           645
       Amortization of deferred financing costs                                                      21            -
       Provision for doubtful accounts                                                               (2)           (9)
       Gain on sale of fixed assets                                                                  (1)           -
       Compensation expense related to stock options                                                 39           523
       Change in assets and liabilities:
          Decrease in billed and unbilled accounts receivable                                     5,111         5,930
          (Increase) decrease in prepaid expenses and other current assets                          (21)          211
          (Increase) decrease in other assets                                                        (6)            6
          Increase in deferred revenues                                                             699           512
          Decrease in accounts payable and accrued liabilities                                   (3,955)       (2,566)
                                                                                          --------------  ---------------
             Net cash provided by operating activities                                            2,268         2,788
                                                                                          --------------  ---------------

Cash flows from investing activities:
    Acquisition of equipment and improvements                                                   (1,133)          (429)
    Proceeds from maturities of marketable securities                                               -             801
    Other, net                                                                                       1              2
                                                                                          --------------  ---------------
             Net cash (used in) provided by investing activities                                (1,132)           374
                                                                                          --------------  ---------------

Cash flows from financing activities:
    Proceeds from issuance of common stock under option plans                                        22           205
    Proceeds from issuance of common stock due to exercise of warrants                               -            116
    Proceeds from issuance of common stock under employee stock purchase plan                        39            -
    Principal payments on long-term debt                                                             -           (123)
    Net short-term payments on Accounts Receivable Financing Agreement                           (1,352)           -
    Principal payments under capital lease obligations                                              (76)           -
                                                                                          --------------  ---------------
             Net cash (used in) provided by financing activities                                 (1,367)            198
                                                                                          --------------  ---------------


Effect of exchange rates on cash                                                                    (49)           (48)
                                                                                          --------------  ---------------
Net (decrease) increase in cash and cash equivalents                                               (280)         3,312
Cash and cash equivalents, beginning of period                                                    1,640          5,065
                                                                                          --------------  ---------------
Cash and cash equivalents, end of period                                                    $     1,360    $     8,377
                                                                                          ==============  ===============

Noncash investing and financing activities:
    Purchase of assets under capital lease obligations                                      $       530    $        -

</TABLE>

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


                                       5
<PAGE>
                          GIGA INFORMATION GROUP, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


1.         Interim Condensed Consolidated Financial Statements

           The accompanying condensed consolidated financial statements of Giga
Information Group, Inc. ("Giga") at March 31, 2001 and for the three months
ended March 31, 2001 and 2000 are unaudited and have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
All adjustments, consisting only of normal recurring adjustments, have been made
which, in the opinion of management, are necessary for a fair presentation. The
results of operations for the periods presented are not necessarily indicative
of the results that may be expected for any future period. For further
information, refer to Giga's audited consolidated financial statements included
in its Annual Report on Form 10-K, for the period ended December 31, 2000, as
filed with the Securities and Exchange Commission.


2.         Historical Net Loss per Common Share

           Giga computes basic and diluted earnings (loss) per share in
accordance with Statement of Financial Accounting Standards ("SFAS") No. 128,
"Earnings Per Share." Basic earnings (loss) per share is based upon the weighted
average number of common shares outstanding during the period. Common equivalent
shares have been excluded from the computation of diluted loss per share as
their effect would be anti-dilutive. Common equivalent shares result from the
assumed exercise of outstanding stock options and warrants, the proceeds of
which are then assumed to have been used to repurchase outstanding common stock
using the treasury stock method. As a result, options and warrants to purchase
shares of common stock in the amount of 4,065,097 shares at March 31, 2001 and
3,580,999 shares at March 31, 2000 were excluded from the calculation of diluted
net loss per common share. At March 31, 2001, options and warrants for 602,666
shares of common stock had an exercise price that was below the average market
value per share of Giga's common stock during the fiscal quarter.


3.         Comprehensive Income (Loss)

           Giga has adopted SFAS No. 130, "Reporting Comprehensive Income,"
which establishes standards for the reporting and display of comprehensive
income (loss) and its components in general purpose financial statements.
Comprehensive income (loss) is comprised of net income (loss) and other
comprehensive income (loss). Other comprehensive income (loss) includes certain
changes in equity that are excluded from net income (loss). At March 31, 2001
and 2000, accumulated other comprehensive income was comprised solely of
cumulative foreign currency translation adjustments, which is reflected in the
table below (in thousands).

<TABLE>
<CAPTION>
                                                                            THREE MONTHS ENDED
                                                                                 MARCH 31,
                                                                      --------------------------------
                                                                           2001            2000
                                                                      ---------------  ---------------
<S>                                                                   <C>                 <C>
Net loss                                                                     $  (465)       $ (2,464)
    Other comprehensive income, net of tax:
                  Foreign currency translation adjustment                         89             285
                                                                      ---------------  ---------------

Comprehensive loss                                                           $  (376)       $ (2,179)
                                                                      ===============  ===============
</TABLE>

                                       6
<PAGE>
                          GIGA INFORMATION GROUP, INC.
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                                   (UNAUDITED)


4.         New Accounting Pronouncement

           In September 2000, the FASB issued SFAS No. 140, "Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities."
SFAS No. 140 replaces SFAS No. 125, "Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities." SFAS No. 140 addresses
certain issues not previously addressed in SFAS No. 125; however, it carries
forward most of the provisions of SFAS No. 125 without reconsideration. SFAS No.
140 is effective for transfers and servicing of financial assets and
extinguishments of liabilities occurring after March 31, 2001. This Statement is
effective for recognition and reclassification of collateral and for disclosures
relating to securitization transactions and collateral for fiscal years ending
after December 15, 2000. Giga anticipates that the adoption of SFAS No. 140 will
not have a significant effect on its financial position or its results of
operations.


5.         Restructuring and Exit Costs

           In February 2000, Giga announced its plan to consolidate operations
in its Watford, U.K. and Windsor, U.K. locations into one common facility in the
Windsor area. As a result, nine employees from its finance and its conferences
groups elected not to relocate to the Windsor area. The relocation is expected
to be completed in the third quarter of fiscal 2001. For the year ended December
31, 2000, approximately $91,000 of additional rent expense and lease
cancellation fees, $65,000 of incremental salaries and benefits cost and $28,000
of incremental real estate and legal fees were charged to expense. Of the total
charges, $68,000 was recorded as cost of services, $67,000 was recorded as sales
and marketing expenses and $49,000 was recorded as general and administrative
expenses. As of December 31, 2000, $77,000 of the amounts had been paid against
these liabilities. As of March 31, 2001, no additional amounts have been paid or
charged against these liabilities.


6.         Accounts Receivable Financing Agreement

           In April 2000, Giga established a one-year Accounts Receivable
Financing Agreement (the "Financing Agreement") with a bank, under which it
could borrow up to the lesser of $5.0 million or 80% of the eligible accounts
receivable, as defined by the Financing Agreement. Upon execution of the
Financing Agreement, Giga paid fees totaling $30,000. Loans under the Financing
Agreement incurred interest at the bank's prime rate plus 1.5 percent. A monthly
collateral handling fee of 0.375 percent was charged on the average daily
financed receivable balance outstanding.

           During the first quarter of 2001, Giga pledged approximately $4.2
million of accounts receivable as collateral and received proceeds of
approximately $3.3 million. As of March 31, 2001, the entire balance outstanding
under the Financing Agreement was repaid. Giga was subject to certain covenants
under the Financing Agreement, the most restrictive of which required total
revenues to increase on a quarterly basis. Giga was in compliance with these
covenants as of March 31, 2001.

           In April 2001, Giga renewed the Financing Agreement for another
one-year period, allowing Giga to continue to borrow up to the lesser of $5.0
million or 80% of the eligible accounts receivable, as defined by the Financing
Agreement. Upon renewal of the Financing Agreement, Giga paid fees totaling
$25,000. Loans under the Financing Agreement bear interest at the bank's prime
rate plus 0.5 percent and a monthly collateral handling fee of 0.375 percent is
charged on the average daily financed receivable balance outstanding. Giga is
subject to certain covenants under the renewed Financing Agreement, the most
restrictive of which requires Giga to maintain an adjusted quick ratio, a ratio
of quick assets, which include cash and receivables, to current liabilities
minus deferred revenue, of at least 1.25 to 1.00. Giga anticipates that it will
be able to maintain compliance with this covenant.


                                       7
<PAGE>
                          GIGA INFORMATION GROUP, INC.
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                                   (UNAUDITED)

7.         Warrants

           In April 2000, upon execution of the Financing Agreement discussed in
Note 6, Giga issued warrants to the bank to purchase 24,000 shares of Giga
common stock. The warrants were exercisable at any time at $5.00 per share and
are scheduled to expire on May 25, 2005. As of March 31, 2001, none of these
warrants were exercised. The estimated fair value of the warrants, at the time
of issuance, was approximately $82,000, which was recorded as deferred financing
costs and is reported as prepaid expenses and other current assets. These costs
were amortized over the term of the Financing Agreement. During the first
quarter of 2001, Giga recognized charges of approximately $21,000 for the
amortization of the financing costs.

           In connection with the renewal of the Financing Agreement in April
2001, the terms of the warrants outstanding that were issued upon the original
execution of the Financing Agreement have been modified such that the initial
exercise price has been reduced to $1.50 per share from $5.00 per share. The
fair value of the warrants will be determined based upon a Black-Scholes
calculation and any adjustments to amortization of deferred financing costs will
be recorded in the financial statements.


8.         Listing of Common Stock

           On January 4, 2001, Giga announced that the listing of its common
stock was transferred to the Nasdaq SmallCap Market from the Nasdaq National
Market effective as of the opening of business on January 5, 2001. Giga was no
longer in compliance with the minimum $50,000,000 market capitalization
requirement for continued listing on the Nasdaq National Market. On March 23,
2001, Giga announced that the listing of its common stock was transferred to the
OTC Bulletin Board from the Nasdaq SmallCap Market effective as of the opening
of business on March 23, 2001. The listing of Giga's common stock was
transferred to the OTC Bulletin Board because Giga was not in compliance with
the net tangible assets/market capitalization/net income requirement, including
the minimum $35,000,000 market capitalization requirement.


9.         Segment Information

           Giga has determined that it operates in one reportable segment,
advisory services. This determination is based on Giga's method of internal
reporting and the similarities among its products and services. Giga's products
and services are similar with regard to financial performance and business risk,
targeted customer market, the methods used to market, sell and provide its
products and services to customers and their purpose which is to provide
customers with objective analyses and advice on developments and trends in
information technology and e-Business. Revenues from the products and services
within, and in support of, Giga's research, advisory and consulting services are
presented in detail in Giga's Condensed Consolidated Statements of Operations.


                                       8
<PAGE>
                          GIGA INFORMATION GROUP, INC.
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                                   (UNAUDITED)


           Giga conducts business principally in the United States and United
Kingdom. Operations in France (through August 31, 2000, due to the
deconsolidation of Giga Information Group S.A., a former wholly-owned subsidiary
of Giga, in September 2000), Germany and Italy have been aggregated
(collectively "Other International"). Revenues are reflected in the geographic
area in which the sales are made. The table below presents information about
Giga's reported revenues and total assets for the three months ended March 31,
2001 and 2000, respectively (in thousands).

<TABLE>
<CAPTION>
                                                 REVENUES                                   TOTAL ASSETS
                                 -----------------------------------------     ----------------------------------------
                                       THREE MONTHS ENDED MARCH 31,                           MARCH 31,
                                 -----------------------------------------     ----------------------------------------
                                        2001                 2000                     2001                2000
                                 -------------------  --------------------     -------------------  -------------------
<S>                              <C>                                           <C>
United States                     $          14,329   $          13,409         $          34,180   $          32,131
United Kingdom                                2,363               2,488                     3,838               5,190
Other International                             778                 942                     1,515               3,187
                                 -------------------  --------------------     -------------------  -------------------
      Consolidated                $          17,470   $          16,839         $          39,533   $          40,508
                                 ===================  ====================     ===================  ===================

</TABLE>










                                       9
<PAGE>
ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

           INFORMATION INCLUDED IN THIS QUARTERLY REPORT ON FORM 10-Q MAY
CONTAIN FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS ARE NOT STATEMENTS OF
HISTORICAL FACTS, BUT RATHER REFLECT GIGA'S CURRENT EXPECTATIONS CONCERNING
FUTURE EVENTS AND RESULTS. GIGA GENERALLY USES THE WORDS "BELIEVES," "EXPECTS,"
"INTENDS," "PLANS," "ANTICIPATES," "LIKELY," "WILL" AND SIMILAR EXPRESSIONS TO
IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS, INCLUDING
THOSE CONCERNING GIGA'S EXPECTATIONS, INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS, SOME OF WHICH ARE BEYOND GIGA'S CONTROL, WHICH
MAY CAUSE GIGA'S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS, OR INDUSTRY
RESULTS, TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE, OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. IN
EVALUATING SUCH STATEMENTS AS WELL AS THE FUTURE PROSPECTS OF GIGA, SPECIFIC
CONSIDERATION SHOULD BE GIVEN TO VARIOUS FACTORS INCLUDING THE FOLLOWING: GIGA'S
PRIOR HISTORY OF LOSSES; GIGA'S NEED TO ATTRACT AND RETAIN QUALIFIED PERSONNEL;
GIGA'S DEPENDENCE ON SALES AND RENEWALS OF SUBSCRIPTION-BASED SERVICES; GIGA'S
ABILITY TO ACHIEVE AND SUSTAIN HIGH RENEWAL RATES; GIGA'S ABILITY TO MANAGE AND
SUSTAIN GROWTH; GIGA'S FUTURE CAPITAL NEEDS AND THE RISKS OF WORKING CAPITAL
DEFICIENCY; GIGA'S DEPENDENCE ON KEY PERSONNEL; COMPETITION FROM OTHER COMPANIES
INCLUDING THOSE WITH GREATER RESOURCES THAN GIGA; THE RISKS ASSOCIATED WITH THE
DEVELOPMENT OF NEW SERVICES AND PRODUCTS; THE POTENTIAL FOR SIGNIFICANT
FLUCTUATIONS IN QUARTERLY OPERATING RESULTS; CONTINUED MARKET ACCEPTANCE OF AND
DEMAND FOR GIGA SERVICES; UNCERTAINTIES RELATING TO PROPRIETARY RIGHTS; GIGA'S
DEPENDENCE ON THE INTERNET INFRASTRUCTURE; THE RISK OF SYSTEM FAILURE; THE RISKS
RELATED TO CONTENT; AND THE RISKS ASSOCIATED WITH INTERNATIONAL OPERATIONS. IN
EVALUATING SUCH FORWARD-LOOKING STATEMENTS, AS WELL AS THE FUTURE PROSPECTS OF
GIGA, SPECIFIC CONSIDERATION SHOULD BE GIVEN TO THE VARIOUS FACTORS DISCUSSED IN
THIS QUARTERLY REPORT ON FORM 10-Q.

OVERVIEW

           Giga provides objective research, advice and continuous coaching on
technology for e-Business. Giga's integrated suite of offerings helps clients
make strategic decisions about the technologies, people and processes needed to
excel in the new digital economy. Emphasizing close interaction among analysts
and clients, Giga delivers support with the speed and scope necessary for
e-Business. Giga's four principal products and services are (i) Advisory
Service, which includes ExperNet and Advisory Consulting, (ii) ePractices, (iii)
Events and Conferences, and (iv) Web Site ScoreCard. Giga's services are
designed to be accessed through GigaWeb, partner Web sites and consultation with
Giga's analysts and advisors.

           Giga introduced its Advisory Service and GigaWeb in April 1996. In
July 1996, Giga introduced its ePractices services. Advisory Consulting was
introduced in September 1997. Giga's Events and Conferences product line was
acquired with the acquisition of BIS Strategic Decisions ("BIS") in April 1995.
Giga's Web Site ScoreCard offering was launched in the third quarter of 1999.
For financial reporting purposes, revenues from (i) Advisory Service, ePractices
services, Advisory Consulting and Web Site ScoreCard are aggregated into
Research, advisory and consulting and (ii) Events and Conferences are aggregated
into Other, principally events.

           Giga's principal products, Advisory Service and ePractices services,
are typically sold through annual contracts that generally provide for payment
at the commencement of the contract period. A portion of these contracts,
however, is billed quarterly or monthly. Amounts billed in advance of services
provided are reflected in Giga's financial statements as deferred revenues and
are recognized monthly on a pro-rata basis over the term of the contract.
Revenues from project consulting and Web Site ScoreCard are recognized as such
services are performed. Revenues from events are recognized as they occur.
Unbilled receivables, the majority of which are due within one year, are
primarily recorded as a result of contractual extended billing terms offered in
connection with Giga's annual contracts. Giga also records the related
commission obligation upon acceptance of a contract and amortizes the
corresponding deferred commission over the contract period in which the related
revenues are earned. With the consistent application of these accounting
policies as well as growth in contract value and volume, trade accounts
receivable, deferred revenues, unbilled accounts receivable and deferred
commissions are expected to increase.


                                       10
<PAGE>
           Essentially all of Giga's current international operations are
located in the European Community and Canada. Giga operates in the European
Community primarily through wholly-owned subsidiaries in the United Kingdom and
Germany. These subsidiaries manage direct sales personnel in other countries in
the European Community as well. In Canada, Giga uses a direct sales force and
provides business support to these salespersons through its operations in the
United States. In France, Giga resells its services through GigaGroup S.A., an
entity that was formerly a wholly-owned subsidiary of Giga, named Giga
Information Group, S.A. As a result of issuing shares of Giga Information Group
S.A. to new investing parties, Giga's ownership of Giga Information Group S.A.
decreased from 100% to 19.9%. Substantially all of Giga's revenues from the
European Community are denominated in foreign currencies, particularly the
British pound, while essentially all of Giga's revenues from Canada are
denominated in U.S. dollars. Giga also markets its products in Israel, Korea,
Argentina, Brazil, Australia, India, Hong Kong and Japan through
representatives. Revenues from these representatives have been and are expected
to continue to be denominated in U.S. dollars. To date, however, such revenues
have been insignificant. As a result of fluctuations in exchange rates,
transactions denominated in foreign currencies have inherent financial risk. To
date, however, Giga's cumulative translation adjustments have been slightly
favorable, although there can be no assurance that this trend will continue in
the future. Giga does not currently hedge its exposure to foreign currency
adjustments.

           Giga believes that a leading measure of its business volume is
revenue run rate ("Revenue Run Rate"). Revenue Run Rate is defined as the
cumulative annualized subscription value of Giga's Advisory Services and
ePractices contracts in effect at a given point in time ("Annualized Value" or
"AV"), plus the previous 12 months' revenues from services not included in AV.
At March 31, 2001, Revenue Run Rate increased 14% to $77.7 million from $68.3
million at March 31, 2000. Annualized Value at March 31, 2001 increased 15% to
$70.1 million from $60.9 million at March 31, 2000.

           A majority of Giga's contracts renew automatically unless the
customer cancels the subscription. Giga's experience is that substantial
portions of customers renew expiring contracts for an equal or greater level of
total fees each year. Historically, a substantial portion of new business,
upgrades and renewals for a given year has been generated by Giga in the last
two calendar quarters, particularly in the last month of the last quarter. As a
result of this quarterly trend in business volume, trade accounts receivable,
unbilled accounts receivable, deferred revenues and deferred commissions
typically increase substantially at quarter end and at the fiscal year end.

           Giga's operating expenses consist of cost of services, sales and
marketing, research and development, general and administrative, and
depreciation and amortization. Cost of services consists primarily of the direct
costs associated with the delivery of Giga's research, advisory and consulting,
and other services. These direct costs include personnel expenses for analysts
and other personnel, direct expenses for events and conferences, royalties to
third party information providers and costs to design, print and distribute
conference brochures and course materials. Sales and marketing expenses include
personnel expenses, promotional expenses, and sales commissions. Sales
commissions are typically deferred when paid and recorded to expense as the
related revenue is recognized. Research and development expenses consist of
personnel, consulting and other expenses to develop, enhance and operate
GigaWeb. General and administrative expenses are primarily personnel costs and
fees for professional services supporting the operational and administrative
functions of Giga. Depreciation and amortization costs consist primarily of
depreciation of computer equipment, furniture and fixtures and leasehold
improvements, and amortization of software and assets under capital lease
obligations.

           In February 2000, Giga announced its plan to consolidate operations
in its Watford, U. K. and Windsor, U. K. locations into one common facility.
Pursuant to this plan, approximately $68,000 was recorded as cost of services,
$67,000 was recorded as sales and marketing expense and $49,000 was recorded as
general and administrative expenses for the year ended December 31, 2000. As of
December 31, 2000, approximately $77,000 of these amounts had been paid against
these liabilities. As of March 31, 2001, no additional amounts have been paid or
charged against these liabilities. See Note 5 to the Condensed Consolidated
Financial Statements.

           Since its inception, Giga has incurred substantial costs to develop
its products and services, establish its GigaWeb system, build a management team
and recruit, employ and train research analysts, sales personnel and support
staff for its business. Giga has incurred substantial tax loss carryforwards
since its inception, and acquired certain tax loss carryforwards. Due to the
magnitude of these existing tax loss carryforwards and substantial uncertainties
associated with its business, Giga is unable to conclude that it is more likely


                                       11
<PAGE>
than not that the deferred tax associated with these tax loss carryforwards will
be realized. Accordingly, this deferred tax asset has been fully reserved. This
valuation allowance will be reduced and the deferred tax asset will be
recognized when and if it becomes more likely than not that the deferred tax
asset will be realized.

















                                       12
<PAGE>
RESULTS OF OPERATIONS


           The following table sets forth certain statement of operations data
as a percentage of revenues for the periods indicated:

<TABLE>
<CAPTION>
                                                             THREE MONTHS ENDED
                                                                  MARCH 31,
                                                        ------------------------------
                                                            2001            2000
                                                        -------------- ---------------
<S>                                                     <C>            <C>
Revenues:
    Research, advisory and consulting                             94%             88%
    Other, principally events                                      6%             12%
                                                        -------------- ---------------

    Total revenues                                               100%            100%
                                                        ============== ===============

Costs and expenses:
    Cost of services                                              41%             43%
    Sales and marketing                                           43%             46%
    Research and development                                       1%              4%
    General and administrative                                    12%             16%
    Depreciation and amortization                                  5%              4%
                                                        -------------- ---------------

    Total costs and expenses                                     102%            113%
                                                        -------------- ---------------

Loss from operations                                             (2%)           (13%)
                                                        -------------- ---------------

Interest income                                                     -              1%
Interest expense                                                    -               -
Foreign exchange loss                                            (1%)            (3%)
                                                        -------------- ---------------

    Loss from operations before income taxes                     (3%)           (15%)
Income tax benefit                                                  -               -
                                                        -------------- ---------------

Net loss                                                         (3%)           (15%)
                                                        ============== ===============

</TABLE>

           Generally, the year-on-year decreases in Giga's operating expenses,
expressed as a percentage of total revenues in the table above, are primarily
due to leveraging those expenses over increased revenues derived from a growing
customer base.


                                       13
<PAGE>
THREE MONTHS ENDED MARCH 31, 2001 COMPARED TO THREE MONTHS ENDED MARCH 31, 2000

           Revenues. Total revenues increased 4% to $17.5 million for the three
months ended March 31, 2001 from $16.8 million for the same three-month period
in 2000. The increase in total revenues was primarily due to the increase in
Research, advisory and consulting revenues.

           Revenues from Research, advisory and consulting increased 11% to
$16.5 million for the three months ended March 31, 2001 from $14.9 million for
the same three-month period in 2000. The increase in revenues was primarily due
to growing market acceptance of Giga's services and revenue growth in
international markets.

           Other revenues, principally events decreased 49% to $998,000 for the
three months ended March 31, 2001 from $2.0 million for the same three-month
period in 2000. The decrease was primarily due to decreased revenues for events
registrations and sponsorships, since fewer events were held in the first
quarter of 2001.

           Cost of services. Cost of services decreased 1% to $7.1 million for
the three months ended March 31, 2001 from $7.2 million for the same three-month
period in 2000. The decrease in costs was primarily due to decreased expenses
for events since fewer events were held in the first quarter of 2001, offset by
increased expenses related to the Customer Advocacy Group that was expanded in
the fourth quarter of 2000.  Cost of services as a percentage of revenues
declined to 41% for the three months ended March 31, 2001 from 43% for the same
period of 2000, primarily due to leveraging these costs over increased revenues.

           Sales and marketing. Sales and marketing expenses decreased 2% to
$7.6 million for the three months ended March 31, 2001 from $7.7 million for the
same three-month period in 2000. The decrease was principally due to the
reduction of costs associated with Giga Information Group S.A., a former
wholly-owned subsidiary of Giga. In September 2000, Giga Information Group S.A.,
issued 482,484 shares of its common stock to new investing parties for 4,467,802
Euros or 9.26 Euros per share. As a result of the transaction, Giga's ownership
of Giga Information Group S.A. decreased from 100% to 19.9%. As Giga no longer
exercises significant influence over that entity, now called GigaGroup S.A., its
accounts are no longer included in the consolidated financial results of Giga.
Sales and marketing expenses as a percentage of revenues declined to 43% for the
three months ended March 31, 2001 from 46% of revenues for the same period of
2000, primarily due to leveraging these costs over increased revenues.

           Research and development. Research and development expenses decreased
67% to $216,000 for the three months ended March 31, 2001 from $646,000 for the
same three-month period in 2000. The decrease was primarily due to the
capitalization of costs associated with the development of a new enhanced
version of GigaWeb during the first quarter in 2001, in accordance with Emerging
Issues Task Force Issue No. 00-02, "Accounting for Web Site Development Costs"
("EITF 00-02"), compared to those costs associated with the completion of
GigaWeb 3.0 that were expensed during the first quarter of 2000.

           General and administrative. General and administrative expenses
decreased 21% to $2.1 million for the three months ended March 31, 2001 from
$2.7 million for the same three-month period in 2000. The decrease was primarily
due to a decrease in compensation expense related to stock option plans and a
decrease in professional fees.

           Depreciation and amortization. Depreciation and amortization expense
increased 31% to $848,000 for the three months ended March 31, 2001 from
$645,000 for the same three-month period in 2000. The increase was primarily due
to increased amortization costs for a sales force automation system deployed in
the fourth quarter of 2000 and for assets acquired under capital leases in the
second half of 2000. Depreciation costs also increased due to purchases of
computer equipment for new hires and to upgrade equipment for existing staff.

           Interest income and expense. Interest income decreased to $30,000 for
the three months ended March 31, 2001 from $107,000 for the same three-month
period in 2000 due to lower cash balances available for investment. Interest
expense decreased to $18,000 for the three months ended March 31, 2001 from
$23,000 for the same three-month period in 2000. The decrease was primarily due
to lower interest rates in the first quarter of 2001 versus the first quarter of
2000.

                                       14
<PAGE>
           Foreign exchange loss. Foreign exchange losses recorded for the three
months ended March 31, 2001 were $84,000 compared to $463,000 for the same
three-month period in 2000 due primarily to realized losses upon payment of
foreign currency denominated expenses and upon receipt of foreign currency
denominated trade accounts receivable.


LIQUIDITY AND CAPITAL RESOURCES

           At March 31, 2001, Giga had cash and cash equivalents of
approximately $1.4 million. During the three months ended March 31, 2001, Giga's
capital expenditures totaled approximately $1.1 million, primarily for computer
equipment and new and enhanced software applications and associated
implementation costs. Giga expects that additional purchases of computer
equipment and software will be made and placed into service as Giga continues to
enhance its infrastructure and as its customer base grows. As of December 31,
2000, Giga entered into an agreement for the customization and deployment of a
new enhanced version of GigaWeb. The total cost of this contract is currently
estimated at $1.3 million for fiscal year 2001. Currently, this project is
expected to be completed during July 2001. As of March 31, 2001, approximately
$409,000 of these costs have been capitalized in accordance with EITF 00-02.
Except for this agreement, Giga does not currently expect the rate of capital
spending through the end of fiscal 2001 to vary significantly from fiscal 2000.

           Net cash provided by operating activities was approximately $2.3
million for the three months ended March 31, 2001 compared to $2.8 million for
the same three-month period in 2000. The decrease in net cash provided by
operating activities was due principally to a decrease in compensation expense
related to stock options and to changes in various balance sheet accounts,
particularly billed and unbilled accounts receivable and accounts payable and
accrued liabilities.

           Net cash used in investing activities was approximately $1.1 million
for the three-month period ended March 31, 2001 compared to net cash provided by
investing activities of $374,000 for the same three-month period in 2000. The
net cash used in investing activities was primarily due to purchases of capital
items and lower proceeds from maturities of marketable debt securities.

           Net cash used in financing activities was approximately $1.4 million
for the three months ended March 31, 2001, compared to net cash provided by
financing activities of approximately $198,000 for the same three-month period
in 2000. The net cash used in financing activities was primarily due to the net
payments of $1.4 million on short-term borrowings under the Accounts Receivable
Financing Agreement during the first three months of 2001.

           To date, Giga has spent substantial amounts on capital and operating
expenditures, which have contributed to an accumulated deficit of $95.7 million
as of March 31, 2001. Giga expects capital and operating expenditures to
increase due to numerous factors, including Giga's plans to increase marketing
efforts for its services and expand its international operations, to attract and
retain qualified employees to support its customer base, to develop and market
new services and products, and to continually enhance the GigaWeb system.

           In April 2000, Giga established a one-year Accounts Receivable
Financing Agreement (the "Financing Agreement") with a bank, under which Giga
could borrow up to the lesser of $5.0 million or 80% of the eligible accounts
receivable, as defined by the Financing Agreement. Upon execution of the
Financing Agreement, Giga paid fees totaling $30,000. Loans under the Financing
Agreement incurred interest at the bank's prime rate plus 1.5 percent. A monthly
collateral handling fee of 0.375 percent was charged on the average daily
financed receivable balance outstanding. During the first quarter of 2001, Giga
pledged approximately $4.2 million of accounts receivable as collateral and
received proceeds of approximately $3.3 million pursuant to the Financing
Agreement. As of March 31, 2001, the entire balance outstanding under the
Financing Agreement was repaid. Giga was subject to certain covenants under the
Financing Agreement, the most restrictive of which required total revenues to
increase on a quarterly basis. Giga was in compliance with these covenants as of
March 31, 2001. In connection with the Financing Agreement, Giga issued warrants
to purchase 24,000 shares of Giga common stock. The warrants were exercisable at
any time at $5.00 per share and are scheduled to expire on May 25, 2005. As of
March 31, 2001, none of these warrants were exercised. The estimated fair value
of the warrants, at the time of issuance, was approximately $82,000, which was
recorded as deferred financing costs and is reported as prepaid expenses and


                                       15
<PAGE>
other current assets. These costs were amortized over the term of the Financing
Agreement. During the first quarter of 2001, Giga recognized charges of
approximately $21,000 for the amortization of the financing costs.

           In April 2001, Giga renewed the Financing Agreement for another
one-year period, allowing Giga to continue to borrow up the lesser of $5.0
million or 80% of the eligible accounts receivable, as defined by the Financing
Agreement. Upon renewal of the Financing Agreement, Giga paid fees totaling
$25,000. Loans under the Financing Agreement bear interest at the bank's prime
rate plus 0.5 percent and a monthly collateral handling fee of 0.375 percent is
charged on the average daily financed receivable balance outstanding. Giga is
subject to certain covenants under the renewed Financing Agreement, the most
restrictive of which requires Giga to maintain an adjusted quick ratio, a ratio
of quick assets, which include cash and receivables, to current liabilities
minus deferred revenue, of at least 1.25 to 1.00. Giga anticipates that it will
be able to maintain compliance with this covenant. In connection with the
renewal of the Financing Agreement, the terms of the warrants outstanding that
were issued upon the original execution of the Financing Agreement have been
modified such that the initial exercise price has been reduced to $1.50 per
share from $5.00 per share. The fair value of the warrants will be determined
based upon a Black-Scholes calculation and any adjustments to amortization of
deferred financing costs will be recorded in the financial statements.

           Giga believes that its existing cash and cash equivalents, cash
expected to be generated from operations net of the repayment of short-term
borrowings, and its Financing Agreement will be sufficient to fund Giga's cash
needs at least through the second fiscal quarter of 2002. However, in the event
that Giga encounters difficulties in collecting accounts receivable or
collecting unbilled accounts receivable generated as a result of extended
billing terms, experiences low or reduced subscription renewal rates or
otherwise has revenues that are lower than planned, or expenses that are higher
than planned, Giga might require additional working capital. If necessary, Giga
will consider various sources of additional financing, including, but not
limited to, private placements, the sale of assets and strategic alliances, but
there can be no assurance that such financing would be available to Giga on
terms that are acceptable, if at all. If adequate funds are not available, Giga
may be required to reduce its fixed costs and delay, scale back or eliminate
certain of its services, any of which could have a material adverse effect on
Giga's business, financial condition and results of operations.

            On January 4, 2001, Giga announced that the listing of its common
stock was transferred to the Nasdaq SmallCap Market from the Nasdaq National
Market effective as of the opening of business on January 5, 2001. Giga was no
longer in compliance with the minimum $50,000,000 market capitalization
requirement for continued listing on the Nasdaq National Market. On March 23,
2001, Giga announced that the listing of its common stock was transferred to the
OTC Bulletin Board from the Nasdaq SmallCap Market effective as of the opening
of business on March 23, 2001. The listing of Giga's common stock was
transferred to the OTC Bulletin Board because Giga was not in compliance with
the net tangible assets/market capitalization/net income requirement, including
the minimum $35,000,000 market capitalization requirement.




                                       16
<PAGE>
RECENTLY ISSUED ACCOUNTING STANDARDS

           In September 2000, the FASB issued SFAS No. 140, "Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities."
SFAS No. 140 replaces SFAS No. 125, "Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities." SFAS No. 140 addresses
certain issues not previously addressed in SFAS No. 125; however, it carries
forward most of the provisions of SFAS No. 125 without reconsideration. SFAS No.
140 is effective for transfers and servicing of financial assets and
extinguishments of liabilities occurring after March 31, 2001. This Statement is
effective for recognition and reclassification of collateral and for disclosures
relating to securitization transactions and collateral for fiscal years ending
after December 15, 2000. Giga anticipates that the adoption of SFAS No. 140 will
not have a significant effect on its financial position or its results of
operations.













                                       17
<PAGE>
ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


           Interest Rate Exposure

           Based on Giga's overall interest exposure at March 31, 2001,
including all interest rate sensitive instruments, a near-term change in
interest rates would not materially affect Giga's consolidated results of
operations or financial position.

           Currency Rate Exposure

           Foreign currency fluctuations have not had a significant impact on
the comparison of the results of operations for the periods presented. The costs
and expenses of Giga's international subsidiaries are generally denominated in
currencies other than the United States dollar. However, since the functional
currency of Giga's international subsidiaries is the local currency, foreign
currency translation adjustments do not impact operating results, but instead
are reflected as a component of stockholders' equity. To the extent Giga expands
its international operations or changes its pricing practices to denominate
prices in foreign currencies, Giga will be exposed to increased risk of currency
fluctuation.













                                       18
<PAGE>
PART II - OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(A)      EXHIBITS

         10.1     Second Amendment, dated February 2, 2001, to the sublease
                  dated June 28, 1999, between the Registrant and InCert
                  Software Corporation, with respect to the premises at One
                  Kendall Square, Cambridge, Massachusetts

         10.2     Accounts Receivable Financing Modification Agreement, dated
                  April 6, 2001, between the Registrant and Silicon Valley Bank

         10.3     Intellectual Property Security Agreement, dated April 6, 2001,
                  between the Registrant and Silicon Valley Bank

         10.4     Amendment to Warrant Agreement, dated April 6, 2001, between
                  the Registrant and Silicon Valley Bank

         11       Statement of Computation of Per Share Earnings


(B)      REPORTS ON FORM 8-K

           Giga filed a Current Report on Form 8-K, dated January 5, 2001,
pertaining to a press release announcing that the listing of Giga's common stock
was transferred to the Nasdaq SmallCap Market from the Nasdaq National Market
effective as of the opening of business on January 5, 2001.

           Giga filed a Current Report on Form 8-K, dated February 15, 2001,
pertaining to a press release announcing Giga's results of operations for the
quarter ended and year ended December 31, 2000.

           Giga filed a Current Report on Form 8-K, dated March 26, 2001,
pertaining to a press release announcing that the listing of its common stock
was transferred to the OTC Bulletin Board from the Nasdaq SmallCap Market as of
the opening of business on March 23, 2001.







                                       19
<PAGE>
                                    SIGNATURE

           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.


                                               GIGA INFORMATION GROUP, INC.

                       May 15, 2001            By: /s/ Daniel M. Clarke
                                                   ----------------------------
                                                   Daniel M. Clarke
                                                   Senior Vice President.
                                                   Chief Financial Officer,
                                                   Secretary and Treasurer
                                                   (Principal Financial and
                                                   Accounting Officer)









                                       20
<PAGE>
                                  EXHIBIT INDEX

EXHIBIT
NUMBER            DESCRIPTION OF DOCUMENTS
------            ------------------------


10.1              Second Amendment, dated February 2, 2001, to the sublease
                  dated June 28, 1999, between the Registrant and InCert
                  Software Corporation, with respect to the premises at One
                  Kendall Square, Cambridge, Massachusetts

10.2              Accounts Receivable Financing Modification Agreement, dated
                  April 6, 2001, between the Registrant and Silicon Valley Bank

10.3              Intellectual Property Security Agreement, dated April 6, 2001,
                  between the Registrant and Silicon Valley Bank

10.4              Amendment to Warrant Agreement, dated April 6, 2001, between
                  the Registrant and Silicon Valley Bank

11                Statement of Computation of Per Share Earnings







                                       21