<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-Q


                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For Quarter Ended September 30, 1999              Commission File Number 1-7516

                                   KEANE, INC.
             (Exact name of registrant as specified in its charter)

              MASSACHUSETTS                                 04-2437166
    (State or other jurisdictions of                     (I.R.S. Employer
     incorporation or organization)                   Identification Number)

 Ten City Square, Boston, Massachusetts                       02129
(Address of principal executive offices)                    (Zip Code)

   Registrant's telephone number, including area code     (617) 241-9200

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 [ ]

As of September 30, 1999, the number of issued and outstanding shares of Common
Stock (excluding 654,796 shares held in treasury) and Class B Common Stock were
71,394,966 and 285,163 shares, respectively.
<PAGE>

KEANE, INC. AND SUBSIDIARIES

TABLE OF CONTENTS


Part I - Financial Information

Consolidated Statements of Income for the three months and nine
months ended September 30, 1999 and 1998....................................  3

Consolidated Balance Sheets as of September 30, 1999 and
December 31, 1998...........................................................  4

Consolidated Statements of Cash Flows for the nine months
ended September 30, 1999 and 1998...........................................  5

Notes to Unaudited Financial Statements.....................................  6

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

Part II - Other Information................................................. 17

Signature Page.............................................................. 18


                                       2
<PAGE>

KEANE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

<TABLE>
<CAPTION>
                                                                      (IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
                                                                THREE MONTHS ENDED                 NINE MONTHS ENDED
                                                                   SEPTEMBER 30,                     SEPTEMBER 30,
                                                             -------------------------         -------------------------
                                                               1999             1998             1999             1998
                                                             --------         --------         --------         --------
<S>                                                          <C>              <C>              <C>              <C>
Total revenues                                               $255,601         $285,465         $821,070         $782,425

Salaries, wages and other direct costs                        171,410          182,285          536,110          504,639
Selling, general and administrative expenses                   50,484           51,531          153,984          140,143
Amortization of goodwill and other intangible assets            2,394            2,069            6,676            5,634

Merger costs                                                                     1,910                             6,042

     Operating income                                          31,313           47,670          124,300          125,967

Investment income                                               1,837            1,046            5,479            3,697
Interest expense                                                                   159                               161
Other expenses, net                                               501              243            1,222              487

     Income before income taxes                                32,649           48,314          128,557          129,016

Provision for income taxes                                     13,223           21,065           52,320           56,283

     Net income                                              $ 19,426         $ 27,249         $ 76,237         $ 72,733

Net income per share (basic)                                 $   0.27         $   0.38         $   1.06         $   1.02

Net income per share (diluted)                               $   0.27         $   0.38         $   1.05         $   1.01

Weighted average common shares outstanding (basic)             71,781           71,253           71,682           70,961

Weighted average common shares and common share                72,467           72,392           72,518           72,298
 equivalents outstanding (diluted)
</TABLE>


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



                                       3
<PAGE>

KEANE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                  (IN THOUSANDS)
                                                          SEPTEMBER 30,       DECEMBER 31,
                                                              1999               1998
                                                            ---------          ---------
                                                           (UNAUDITED)
<S>                                                       <C>                 <C>
Assets
Current:
     Cash and cash equivalents                              $  82,486          $  51,696
     Short-term investments                                     5,482              6,165
     Accounts receivable, net
          Trade                                               250,390            229,457
          Other                                                 1,064              1,573
     Prepaid expenses and other current assets                 28,591             23,376
                                                            ---------          ---------
          Total current assets                                368,013            312,267

     Long-term investments                                     73,370             71,368
     Property and equipment, net                               29,556             29,973
     Intangible assets, net                                    63,134             35,714
     Other assets, net                                          9,937              8,238
                                                            ---------          ---------
                                                            $ 544,010          $ 457,560
                                                            =========          =========
Liabilities
Current:
     Accounts payable                                       $  26,406          $  20,222
     Accrued compensation                                      28,953             25,429
     Accrued expenses and other liabilities                    18,401             30,647
     Notes payable                                              9,710              1,000
     Accrued income taxes                                      15,586             13,548
     Current capital lease obligations                          1,075                954
                                                            ---------          ---------
          Total current liabilities                           100,131             91,800

     Long-term portion of capital lease obligations             1,764              1,976

Stockholders' Equity
     Common Stock                                               7,205              7,136
     Class B Common Stock                                          29                 29
     Additional paid-in capital                               119,860            109,606
     Foreign currency translation                                (373)              (764)
     Retained earnings                                        326,783            250,546
     Less treasury stock                                      (11,389)            (2,769)
                                                            ---------          ---------
          Total stockholders' equity                          442,115            363,784
                                                            ---------          ---------
                                                            $ 544,010          $ 457,560
                                                            =========          =========
</TABLE>

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



                                       4
<PAGE>

KEANE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                          (IN THOUSANDS)
                                                                         NINE MONTHS ENDED
                                                                            SEPTEMBER 30,
                                                                     --------------------------
                                                                       1999              1998
                                                                     --------          --------
<S>                                                                  <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                           $ 76,237          $ 72,733
Adjustments to reconcile net income to
     net cash provided by operating activities
       Depreciation and amortization                                   18,174            16,689
       Deferred income taxes                                           (8,130)           (7,303)
       Provision for doubtful accounts                                  4,028             3,913
       (Gain) loss on disposal of fixed assets                             26               (80)
     Changes in assets and liabilities, net of acquisitions:
       Increase in accounts receivable                                (20,101)          (92,795)
       Decrease in prepaid expenses and other assets                    3,274             1,231
       Increase in income taxes payable                                 2,036             7,918
       Increase (decrease) in accounts payable,
         accrued expenses, and other current liabilities              (18,850)           15,326
                                                                     --------          --------
     Net cash provided by operating activities                         56,694            17,632

CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchase of investments                                          (65,057)          (43,556)
     Sale of investments                                               63,738            52,109
     Purchase of property and equipment                               (10,510)          (14,128)
     Proceeds from sale of assets                                          56               307
     Payment for acquisitions                                         (23,953)           (9,152)
                                                                     --------          --------
     Net cash used for investing activities                           (35,726)          (14,420)

CASH FLOWS FROM FINANCING ACTIVITIES:
     Borrowings under notes payable and long-term debt                  8,210                44
     Payments under long-term debt                                        (91)           (7,237)
     Purchase of treasury stock                                        (8,620)              275
     Dividends paid                                                                      (1,873)
     Proceeds from issuance of common stock                            10,323             7,498
                                                                     --------          --------
     Net cash provided by (used for) financing activities               9,822            (1,293)
                                                                     --------          --------

Net increase in cash and cash equivalents                              30,790             1,919
Cash and cash equivalents, beginning of period                         51,696            40,276
                                                                     --------          --------
Cash and cash equivalents, end of period                             $ 82,486          $ 42,195
                                                                     ========          ========
</TABLE>

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


                                       5
<PAGE>

KEANE, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED FINANCIAL STATEMENTS


Note 1.  The accompanying unaudited consolidated financial statements have been
         prepared in accordance with the accounting policies described in the
         Company's Annual Report on Form 10-K for the year ended December 31,
         1998 (the "Annual Report") and should be read in conjunction with the
         disclosures therein. All financial figures are in thousands of dollars,
         except per share amounts. Prior period amounts have been restated to
         conform to current year presentation.

         In the opinion of management, these interim financial statements
         reflect all adjustments, consisting of normal recurring accruals,
         necessary to present fairly the financial position, results of
         operations and cash flows for the periods presented. Interim results
         are not necessarily indicative of results for the full year.

         During 1998, the Company completed five acquisitions. Four of the
         acquisitions were accounted for as poolings-of-interests and one was
         accounted for as a purchase. The accompanying financial statements and
         notes have been restated for all periods presented for the three
         material poolings-of-interests acquisitions.

Note 2.  Computation of earnings per share for the three months and nine months
         ended September 30, 1999 and 1998. In the period ended September 30,
         1999 there were 1,086,867 of anti-dilutive options.

<TABLE>
<CAPTION>
                                                   Three months ended              Nine months ended
                                                      September 30,                   September 30,
                                                 -----------------------         -----------------------
                                                  1999            1998            1999            1998
                                                 -------         -------         -------         -------
<S>                                              <C>             <C>             <C>             <C>
Net income                                       $19,426         $27,249         $76,237         $72,733

Weighted average number of common                 71,781          71,253          71,682          70,961
 shares outstanding used in calculation
 of basic earnings per share

Incremental shares from the assumed                  686           1,139             836           1,337
 exercise of dilutive stock options

Weighted average number of common shares          72,467          72,392          72,518          72,298
 outstanding used in calculation of
 diluted earnings per share

Earnings per share

             Basic                               $  0.27         $  0.38         $  1.06         $  1.02
                                                 =======         =======         =======         =======

             Diluted                             $  0.27         $  0.38         $  1.05         $  1.01
                                                 =======         =======         =======         =======
</TABLE>


                                       6
<PAGE>

KEANE, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED FINANCIAL STATEMENTS

Note 3.  Intangible assets consist of the following:

                                                9/30/99        12/31/98
                                               --------        --------
         Goodwill                              $ 57,665         $23,695
         Noncompetition agreements                1,000           2,268
         Customer-based intangibles              44,436          44,501
         Software                                 2,534           5,618
         Other                                      110             273
                                               --------         -------
                                                105,745          76,355
         Less accumulated amortization           42,611          40,641
                                               --------         -------
                                               $ 63,134         $35,714
                                               ========         =======


                                       7
<PAGE>

KEANE, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q contains forward-looking statements.  For
this purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements.  Without
limiting the foregoing, the words "believes," "anticipates," "plans," "expects,"
and similar expressions are intended to identify forward-looking statements.
There are a number of important factors that could cause the Company's actual
results to differ materially from those indicated by such forward-looking
statements.  These factors include, without limitation, those set forth below
under the caption "Certain Factors That May Affect Future Results."

Results of Operations
---------------------

The Company's revenues for the third quarter of 1999 were $255.6 million, a
10.5% decrease from $285.5 million in the third quarter of 1998. The Company's
revenues for the first nine months of 1999 were $821.1 million, a 4.9% increase
from $782.4 million in the first nine months of 1998. The Company's revenues
growth for 1999 has been negatively impacted by the rapid completion of its Year
2000 compliance projects. The Company's revenues in the plan, build and manage
services, excluding its Year 2000 compliance services, for the third quarter of
1999 were $214.6 million, up 18.0% from revenues of $181.9 million in the third
quarter of 1998, while Year 2000 compliance revenues for the third quarter were
$41.0 million, down 60.4% from revenues of $103.6 million in the third quarter
of 1998. For the first nine months of 1999 plan, build and manage revenues,
excluding Year 2000 compliance revenues, were $639.0 million, up 25.5% from
revenues of $509.3 million in the nine months ended September 30, 1998, while
Year 2000 compliance revenues for the first nine months of 1999 were $182.1
million, down 34.1% from revenues of $276.2 million in the nine months ended
September 30, 1998.

Despite the period-to-period growth in revenues from non-Year 2000 services, the
Company is experiencing, and expects to continue to experience through at least
December 31,1999, a slowdown in its non-Year 2000 services due to increased
reluctance of its customers to implement new IT projects until all outstanding
Year 2000 issues are resolved.

The Company expects Year 2000 compliance revenues to continue to decline for the
remainder of 1999. Year 2000 compliance revenues represented 16.0% of the
Company's total revenues for the third quarter and represented 22.2% of revenues
for the first nine months compared to 36.3% and 34.9%, respectfully, for the
same period last year.

Salaries, wages and other direct costs for the third quarter of 1999 were $171.4
million, or 67.1% of revenues, compared to $182.3 million, or 63.9% of revenues,
during the same period last year. Salaries, wages and other direct costs for the
first nine months of 1999 were $536.1




                                       8
<PAGE>

million, or 65.3% of revenues, compared to $504.6 million, or 64.5% of revenues,
during the same period last year. This increase as a percentage of revenues was
primarily attributable to lower utilization of personnel. Plan and build
services comprised approximately $113.4 million, or 44.4% of the Company's
revenues in the third quarter of 1999, compared to approximately $92.6 million,
or 32.4% for the same period last year and approximately $337.4 million, or
41.1% of the Company's revenues, for the first nine months of 1999 compared to
$257.2 million, or 32.8% of revenues for the same period last year.

Selling, general and administrative expenses (SG&A) for the third quarter of
1999 were $50.5 million, or 19.8% of revenues, compared to $51.5 million, or
18.1% of revenues, for the same period last year. SG&A expenses for the first
nine months of 1999 were $154.0 million, or 18.8% of revenues, compared to
$140.1 million, or 17.9% of revenues, for the same period last year. The
increase in SG&A as a percentage of revenues was primarily attributable to the
decrease in the Company's revenue growth rate, as a result of the Company's Year
2000 compliance services being completed at a slightly faster rate than
expected. The Company took corrective action during the third quarter of 1999 to
help reduce SG&A for the remainder of the year.

Amortization of goodwill and other intangible assets for the third quarter of
1999 totaled $2.4 million, or 0.9% of revenues, compared to $2.1 million, or
0.7% of revenues, for the same period last year. Amortization of goodwill and
capitalized acquisition costs for the first nine months of 1999 were $6.7
million, or 0.8% of revenues, compared to $5.6 million, or 0.7% of revenues, for
the same period last year. The increase in amortization is primarily
attributable to certain intangible assets acquired during 1999 as a result of
acquisitions.

The Company recognized investment income of $1.8 million in the third quarter of
1999 and $5.5 million in the first nine months of 1999, compared to $1.0 and
$3.7 million, respectively, for the comparable periods last year. The increase
in investment income is attributed to a larger investment balance compared to
last year.

The Company's pre-tax income for the third quarter of 1999 was $32.6 million, or
12.8% of revenues, compared to $48.3 million, or 16.9% of revenues, for the same
period last year.  Pre-tax income for the first nine months of 1999 was $128.6
million, or 15.7% of revenues, compared to $129.0 million, or 16.5% of revenue,
for the same period last year.

The Company's effective tax rate for the third quarter of 1999 was 40.5%,
compared to 43.6% for the same period last year. The Company's effective tax
rate for the first nine months of 1999 was 40.7%, compared to 43.6% for the same
period last year. The decrease in the effective tax rate was primarily due to a
decrease in the Company's state income taxes.

Net income and earnings per share basic and diluted for the third quarter of
1999 were $19.4 million, $0.27 per share and $0.27 per share, respectively,
compared to $27.2 million, $0.38 per




                                       9
<PAGE>

share and $0.38 per share, respectively, for the same period last year. Net
income and earnings per share basic and diluted for the nine months of 1999 were
$76.2 million, $1.06 per share and $1.05 per share, respectively, compared to
$72.7 million, $1.02 per share and $1.01 per share, respectively, for the same
period last year. The increase in net income and earnings per share is
attributable to an increase in the Company's higher margin plan and build
service business. In the case of earnings per share, the increase is also
attributable in part to the Company's repurchasing of 160,000 shares of common
stock during the quarter for a total of 325,000 shares of Common Stock
repurchased by the Company year to date.

Liquidity and Capital Resources
-------------------------------

The Company ended the third quarter of 1999 with cash and investments totaling
approximately $161.3 million, up $32.1 million from the 1998 year end balance
primarily as a result of increased cash generated by operations. Strong cash
flow continued to finance the Company's working capital and capital expenditures
needs with excess funds in part being used for the Company's stock repurchase
program. On May 26, 1999, the Company's Board of Directors had authorized the
repurchase of up to 1,000,000 million shares of common stock lasting until May
25, 2000.  As a result, 160,000 shares were repurchased during the third quarter
for a total of 325,000 shares year to date.  The Company maintains and has
available a $20.0 million unsecured demand line of credit split equally between
two major Boston banks.

Based on the Company's current operating plan, the Company believes that its
cash and cash equivalents on hand, cash flows from operations, and its current
available line of credit will be sufficient to meet its current working capital
requirements during at least the next twelve months.

Impact of Inflation and Changing Prices
---------------------------------------

Inflationary increases in costs have not been material in recent years and, to
the extent permitted by competitive pressures, are passed on to the clients
through increased billing rates. Rates charged by the Company are based on the
cost of labor and market conditions within the industry.  The Company was able
to increase its billing rates over its increases in direct labor costs in 1999.
This is due primarily to the Company's increase in client strategic services in
which competition is less and the quality of services commands higher rates.



                                       10
<PAGE>

Year 2000 Issues
----------------

Overview

The "Year 2000" issue is the result of computer programs being written using two
digits rather than four to define the applicable year.  Keane's computer
equipment and software and devices with embedded technology that are time
sensitive may recognize "00" as the year 1900 rather than the Year 2000.  This
could result in a system failure or miscalculations causing disruptions of
Keane's operations, including, among other things, a temporary inability to
perform mission critical functions like billing and time reporting.  As a
result, software and computer systems may need to be upgraded or replaced in
order to ensure that they accept four digit date codes.

State of Readiness

Company Services and Products. Keane generally delivers services and not
-----------------------------
products to its customers. The Company believes that the services provided by
its professionals to its customers are provided in a Year 2000 compliant manner.

As part of its build services, Keane develops, markets and sells software
products through its Healthcare Solutions Practice.  Certain of these products
are not fully Year 2000 operable.  Keane has advised its customer base for these
products that it does not intend to offer Year 2000 compliant versions of these
products and has encouraged them to migrate to new products offered by Keane
that are Year 2000 compliant.  The Company anticipates that some customers will
choose not to migrate to these products and will therefore terminate their
relationship with Keane's Healthcare Solutions Practice.  The exact amount of
anticipated lost customers has not been determined.  The Company believes that
the revenue lost as a result of these events will be immaterial to its overall
operations.

In addition to its own products, Keane markets certain third party software
products through its Healthcare Solutions Practice.  The Company is seeking
assurances from the vendors of these products that all licensed software is Year
2000 compliant.  The Company received substantially all of these assurances in
the first quarter of 1999.

Company Systems.  Keane has established a Year 2000 task force that has
---------------
completed its assessment of the Company's Information Technology-related ("IT-
related") systems for the Year 2000 issue.  For IT-related systems, the Company
believes that most of the critical systems, including its accounting software,
AS400 applications and payroll systems, are now Year 2000 compliant. The Company
replaced its billing software effective the beginning of the third quarter,
because the previous software product was not Year 2000 compliant.  The cost to
replace the software was approximately $500,000.

Keane's Year 2000 task force has also completed its evaluation of the Company's
non-IT systems, including alarm systems, sprinkler systems, elevators, fax
machines and other miscellaneous systems that may contain embedded technology,
for the Year 2000 issue during the first quarter of 1999.  Keane has established
a remediation plan to address any outstanding Year 2000 Issues concerning the
Company's non-IT systems.



                                       11
<PAGE>

Costs to Address Year 2000 Issues

Keane anticipates that it will incur direct costs to modify or replace existing
systems used by Keane in the operation of its business to ensure that all
systems will be operable in the Year 2000, including the costs to replace its
billing software described above.  The Company believes that the total amounts
spent by it to date and that it expects to spend in the remainder of 1999
addressing the Year 2000 issue are not material.

Risks to the Company

In the event of a failure of some or all of the Company's IT-related and non-IT
systems on January 1, 2000, the Company's operations may be substantially
curtailed until the Company or its third-party suppliers develop a solution to
address such system's failure.  In such event, the Company may be unable to:
(a) perform billing functions, (b) keep track of time performed on projects for
its clients, (c) access client records, (d) communicate between field offices
and headquarters, (e) operate its Internet site, (f) receive and send email or
(g) prepare its financial statements for the fourth quarter of 1999 or periods
thereafter.

Among the services that Keane provides are assessment, planning,
migration/remediation and testing services for Year 2000 compliance.  Keane has
devoted significant resources to services that address the Year 2000 problem and
believes the market for these services will decline as the Year 2000 approaches.
Although Keane believes that the demand for its services relating to the Year
2000 problem will continue to exist after the Year 2000, this demand is
diminishing and will continue to diminish significantly over time and will
eventually disappear.

Keane's services addressing the Year 2000 problem involve key aspects of its
clients' computer systems.  A failure in a client's system could result in a
claim for substantial damages against Keane, regardless of Keane's
responsibility for the failure. Keane could incur substantial costs in
connection with any resulting litigation, regardless of the outcome.

Contingency Plans

As described above, the Company has identified potential vulnerabilities
associated with the change of the century.  The Company is devoting resources to
working with providers of systems to the Company to ensure that its business is
not substantially interrupted as a result of the date change.  The Company
currently does not have a contingency plan in the event of a particular system
not being Year 2000 compliant. Such a plan will be developed if it becomes clear
that the company is not going to achieve its scheduled compliance objectives.




                                       12
<PAGE>

Certain Factors that May Affect Future Results
----------------------------------------------

The following important factors, among others, could cause actual results to
differ materially from those indicated by forward-looking statements made in
this Quarterly Report on Form 10-Q and presented elsewhere by management from
time to time.

Fluctuations in Operating Results.  Keane has experienced and expects to
---------------------------------
continue to experience fluctuations in its quarterly results.  Keane's gross
margins vary based on a variety of factors including employee utilization rates
and the number and type of services performed by Keane during a particular
period.  A variety of factors influence Keane's revenue in a particular quarter,
including:


     --   general economic conditions which may influence investment decisions
          or cause downsizing;


     --   the number and requirements of client engagements;


     --   employee utilization rates;


     --   changes in the rates Keane can charge clients for services;


     --   acquisitions; and

     --   other factors, many of which are beyond Keane's control.


A significant portion of Keane's expenses do not vary relative to revenue.  As a
result, if revenue in a particular quarter does not meet expectations, Keane's
operating results could be materially adversely affected, which in turn may have
a material adverse impact on the market price of Keane common stock.  In
addition, many of Keane's engagements are terminable without client penalty.  An
unanticipated termination of a major project could result in an increase in
underutilized employees and a decrease in revenue and profits.

Risks Relating to Acquisitions.  In the past five years, Keane has grown
------------------------------
significantly through acquisitions.  Since January 1, 1998, Keane has completed
the acquisitions of Quantum Associates, Inc. d/b/a Omega Systems in Pittsburgh,
Pennsylvania, GSE Erudite Systems in Salt Lake City, Utah, Bricker & Associates,
Inc. in Chicago, Illinois, Icom Systems Ltd in Birmingham, England, Fourth Tier,
Inc. in El Segundo, California, Emergent Corporation in San Mateo, California,
Advanced Solutions Inc. in New York, New York, Amherst Consulting Group, Inc. in
Boston, Massachusetts, Parallax Solutions Ltd in the United Kingdom and
Jamison/Gold in Marina Del Rey, California.  Keane's future growth may be based
in part on selected acquisitions.  At any given time, Keane may be in various
stages of considering such opportunities.  Keane can provide no assurances that
it will be able to find and identify desirable acquisition targets or that it
will be successful in entering into a definitive agreement with any one



                                       13
<PAGE>

target. Also, even if a definitive agreement is reached, there is no assurance
that any future acquisition will be completed.

Keane typically anticipates that each acquisition will bring certain benefits,
such as an increase in revenue.  Prior to completing an acquisition, however, it
is difficult to determine if such benefits can actually be realized.
Accordingly, there is a risk that an acquired company may not achieve an
increase in revenue or other benefits for Keane.  In addition, an acquisition
may result in unexpected costs and expenses.  Any of these events could have a
material adverse effect on Keane's business, financial condition and results of
operations.

The process of integrating acquired companies into Keane's existing business may
also result in unforeseen difficulties.  Unforeseen operating difficulties may
absorb significant management attention which Keane might otherwise devote to
its existing business.  Also, the process may require significant financial
resources that Keane might otherwise allocate to other activities, including the
ongoing development or expansion of Keane's existing operations.  Finally,
future acquisition could result in Keane having to incur additional debt and/or
contingent liabilities.  All of these possibilities might have a material
adverse effect on Keane's business, financial condition and result of
operations.

Dependence on Personnel.  Keane believes that its future success will depend in
-----------------------
large part on its ability to continue to attract and retain highly-skilled
technical and management personnel.  The competition for such personnel is
intense.  Keane may not succeed in attracting and retaining the personnel
necessary to develop its business.  If Keane does not, its business, financial
condition and result of operations could be materially adversely affected.

Highly Competitive Market.  The market for Keane's services is highly
-------------------------
competitive.  The technology for custom software services can change rapidly.
The market is fragmented, and no company holds a dominant position.
Consequently, Keane's competition for client assignments and experienced
personnel varies significantly from city to city and by the type of service
provided.  Some of Keane's competitors are larger and have greater technical,
financial and marketing resources and greater name recognition in the markets
they serve than does Keane.  In addition, clients may elect to increase their
internal information systems resources to satisfy their custom software
development needs.

Keane believes that in order to compete successfully in the software services
industry it must be able to:


     --   compete cost-effectively;


     --   develop strong client relationships;


     --   generate recurring revenues;


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<PAGE>

     --   utilize comprehensive delivery methodologies; and


     --   achieve organizational learning by implementing standard operational
          processes.


Keane may not be able to compete successfully against current or future
competitors.  In addition, competitive pressures faced by Keane may materially
adversely affect its business, financial condition and results of operations.

Year 2000 Compliance; Risks Associated with Provision of Year 2000 Services.
---------------------------------------------------------------------------
Keane has reviewed its internal computer systems and has identified certain
internal systems that are not Year 2000 compatible (i.e., such systems use only
two digits to represent the year in date data fields and, consequently, may not
accurately distinguish between the 20th and 21st centuries or may not function
properly at the turn of the century).  Keane is in the process of correcting
these systems or replacing them with Year 2000 compliant systems.  Keane expects
to implement successfully the systems and programming changes necessary to
address Year 2000 issues and does not believe that the cost of such actions will
have a material effect on Keane's financial condition or results of operations.
There may, however, be a delay in, or increased costs associated with, the
implementation of these changes.  Keane's inability to implement changes could
have a material adverse effect on Keane's business, financial condition or
results of operations.

Among the services that Keane provides are assessment, planning,
migration/remediation and testing services for Year 2000 compliance.  Keane has
devoted significant resources to services that address the Year 2000 problem and
believes the market for these services will decline as the Year 2000 approaches.
Although Keane believes that the demand for its services relating to the Year
2000 problem will continue to exist after the Year 2000, this demand will
diminish significantly over time and will eventually disappear.

Keane's services addressing the Year 2000 problem involve key aspects of its
clients' computer systems.  A failure in a client's system could result in a
claim for substantial damages against Keane, regardless of Keane's
responsibility for the failure.  Keane could incur substantial costs in
connection with any resulting litigation, regardless of the outcome.

International Operations.  Keane commenced operations in the United Kingdom with
------------------------
its acquisition of Icom Systems Ltd, now known as Keane Limited, in August 1998
and acquired Parallax Solutions Ltd in the United Kingdom in May 1999.  Keane's
international operations will be subject to political and economic
uncertainties, currency exchange rate fluctuations, foreign exchange
restrictions, changes in taxation and other difficulties in managing operations
overseas.  Keane may not be successful in its international operations.


                                       15
<PAGE>

As a result of these and other factors, the Company's past financial performance
should not be relied on as an indication of future performance. Keane believes
that period to period comparisons of its financial results are not necessarily
meaningful and it expects that results of operations may fluctuate from period
to period in the future.

Quantitative and Qualitative Disclosure About Market Risk.  Market risks were
---------------------------------------------------------
reported in the Company's Annual Report on Form 10-K for the year ended December
31, 1998.  There have been no material changes in these risks since the end of
the year.




                                       16
<PAGE>

KEANE, INC. AND SUBSIDIARIES

                           Part II - Other Information
--------------------------------------------------------------------------------

Item 6.  Exhibits and Reports on Form 8-K

          (a)  None




                                       17
<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.

                                         KEANE, INC.
                                         (Registrant)




Date   November 12, 1999                 /s/ John F. Keane
       -----------------                 --------------------------------
                                         John F. Keane
                                         President




Date   November 12, 1999                 /s/ John J. Leahy
       -----------------                 --------------------------------
                                         John J. Leahy
                                         Sr. Vice President, Finance





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