<PAGE>   1
                                  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 SEPTEMBER 30, 1999 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: 000-23889

                                 ---------------

                  BRIGHTSTAR INFORMATION TECHNOLOGY GROUP, INC.
               (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)

           DELAWARE                                            76-0553110
(STATE OF OTHER JURISDICTION OF                             (I.R.S. EMPLOYER
 INCORPORATION OR ORGANIZATION)                            IDENTIFICATION NO.)

     4900 HOPYARD ROAD, SUITE 200
        PLEASANTON, CALIFORNIA                                   94566
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                       (ZIP CODE)

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (925) 251-0000

                                 ---------------

    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 [ ].

    The number of shares of Common Stock of the Registrant, par value $.001 per
share, outstanding at November 12, 1999, was 8,642,034.

*   The Registrant became subject to the reporting requirements of Section 13
    of the Securities Exchange Act of 1934 on April 16, 1998.


<PAGE>   2
                          ITEM 1. FINANCIAL STATEMENTS

         BRIGHTSTAR INFORMATION TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                         (000'S, EXCEPT PER SHARE DATA)


<TABLE>
<CAPTION>
                                                   SEPTEMBER 30,     DECEMBER 31,
                                                       1999             1998
                                                   -------------     ------------
<S>                                                <C>               <C>
ASSETS
CURRENT ASSETS:
   Cash and cash equivalents                         $   2,406        $   3,672
   Trade accounts receivable, net
     of allowance for doubtful accounts
     of $1,692 and $1,316                               24,735           20,297
   Unbilled revenue                                      3,423            2,238
   Deferred tax asset                                      991              785
   Prepaid expenses and other                            1,874            1,298
                                                     ---------        ---------
   Total current assets                                 33,429           28,290

PROPERTY AND EQUIPMENT                                   7,479            5,051
   Less-accumulated depreciation                        (2,798)          (1,505)
                                                     ---------        ---------
   Property and equipment, net                           4,681            3,546

GOODWILL                                                64,372           62,260
   Less-accumulated amortization                        (2,237)          (1,030)
                                                     ---------        ---------
   Goodwill, net                                        62,135           61,230

OTHER                                                      183              498
                                                     ---------        ---------

TOTAL                                                $ 100,428        $  93,564
                                                     =========        =========

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
   Accounts payable                                  $   5,615        $   3,920
   Acquisition payable                                     500            4,784
   Line of credit                                       10,910               --
   Current maturities of capital lease
     obligations                                           156              167
   Restructuring reserve                                 2,763            4,383
   Accrued salaries and other expenses                   7,698            6,328
   Income taxes payable                                    295            1,791
   Deferred revenue                                        361            1,936
                                                     ---------        ---------
      Total current liabilities                         28,298           23,309

NOTE PAYABLE                                               500               --
LONG-TERM CAPITAL LEASES, NET                               40              129
OTHER                                                       34               52
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
Common stock, $0.001; 35,000,000 shares
  authorized; 8,642,034 and 7,989,059
  shares issued and outstanding                              8                8
   Additional paid-in capital                           84,393           82,818
   Common stock payable                                  6,300            6,875
   Common stock warrants                                   100              100
   Deferred stock compensation                              --             (468)
   Accumulated other comprehensive income                  151              248
   Retained earnings (deficit)                         (19,396)         (19,507)
                                                     ---------        ---------
      Total stockholders' equity                        71,556           70,074
                                                     ---------        ---------

   TOTAL                                             $ 100,428        $  93,564
                                                     =========        =========
</TABLE>

See notes to condensed consolidated financial statements

<PAGE>   3
         BRIGHTSTAR INFORMATION TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                           (000'S, EXCEPT SHARE DATA)


<TABLE>
<CAPTION>
                                                          THREE MONTHS ENDED                   NINE MONTHS ENDED
                                                    -------------------------------     -------------------------------
                                                    SEPTEMBER 30,     SEPTEMBER 30,     SEPTEMBER 30,     SEPTEMBER 30,
                                                        1999              1998              1999              1998
                                                    -------------     -------------     -------------     -------------
<S>                                                 <C>               <C>               <C>               <C>
REVENUE                                              $    33,046       $    26,738       $   101,648       $    50,404

COST OF REVENUE                                           25,214            19,505            75,014            36,376
                                                     -----------       -----------       -----------       -----------

GROSS PROFIT                                               7,832             7,233            26,634            14,028

OPERATING EXPENSES:
   Selling, general and administrative expenses            6,814             5,337            23,013             9,934
   Stock compensation expense                                 --             1,896               468             3,159
   In-process research & development costs                    --                --                --             3,000
   Goodwill amortization                                     409               330             1,207               525
   Depreciation and amortization                             491               313             1,293               555
                                                     -----------       -----------       -----------       -----------
      Total operating expenses                             7,714             7,876            25,981            17,173

INCOME (LOSS) FROM OPERATIONS                                118              (643)              653            (3,145)

OTHER INCOME (EXPENSE)                                         1                95               (31)              229

INTEREST EXPENSE                                            (234)               (7)             (312)              (68)
                                                     -----------       -----------       -----------       -----------

INCOME (LOSS) BEFORE INCOME TAXES                           (115)             (555)              310            (2,984)

INCOME TAX PROVISION (CREDIT)                               (480)              563               199             1,256
                                                     -----------       -----------       -----------       -----------

NET INCOME (LOSS)                                    $       365       $    (1,118)      $       111       $    (4,240)
                                                     ===========       ===========       ===========       ===========

Net income (loss) per share -

         Basic and Diluted                           $      0.04       $     (0.13)      $      0.01       $     (0.76)
                                                     ===========       ===========       ===========       ===========

Weighted average shares outstanding -

         Basic                                         8,897,217         8,442,305         8,755,448         5,552,696
                                                     ===========       ===========       ===========       ===========
         Diluted                                       8,897,217         8,456,920         8,755,448         5,572,954
                                                     ===========       ===========       ===========       ===========
</TABLE>

See notes to condensed consolidated financial statements.


<PAGE>   4
         BRIGHTSTAR INFORMATION TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     (OOO'S)


<TABLE>
<CAPTION>
                                                                     NINE MONTHS ENDED
                                                                SEPTEMBER 30,  SEPTEMBER 30,
                                                                    1999           1998
                                                                -------------  -------------
<S>                                                             <C>            <C>
OPERATING ACTIVITIES:
   Net income (loss)                                              $    111       $ (4,241)
   Adjustments to reconcile net loss to net cash
       used in operating activities:
   Cumulative translation adjustment                                   (97)            (9)
   Depreciation and amortization                                     2,500          1,080
   Additions to allowance for doubtful accounts                        376            447
   In-process research & development costs                              --          3,000
   Compensation expense on issuance of common stock                    468          3,160
   Deferred taxes                                                     (206)            --
       Cash provided by (used in) operating working capital:
       Trade accounts receivable                                    (4,814)        (6,184)
       Unbilled revenue                                             (1,185)           102
       Prepaid expenses and other                                     (279)          (825)
       Accounts payable                                              1,695            183
       Restructuring reserve                                        (1,620)            --
       Accrued salaries and other expenses                           1,370         (5,312)
       Income taxes payable                                         (1,496)         1,317
       Deferred revenue                                             (1,575)            --
                                                                  --------       --------
       Net cash used in operating activities                        (4,752)        (7,282)

INVESTING ACTIVITIES:
   Cash paid to acquire founding companies                              --        (41,891)
   Payments for acquisitions                                        (4,896)        (1,157)
   Additions of property and equipment, net of disposals            (2,428)          (710)
                                                                  --------       --------
       Net cash used by investing activities                        (7,324)       (43,758)

FINANCING ACTIVITIES:
   Payments on short-term debt and notes payable                        --         (1,211)
   Net proceeds from issuance of common stock                           --         59,090
   Borrowings under line of credit                                  10,910           (175)
   Net payments on capital lease obligations                          (100)          (182)
                                                                  --------       --------
       Net cash provided by financing activities                    10,810         57,522

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                (1,266)         6,482

CASH AND CASH EQUIVALENTS:
   Beginning of period                                               3,672              3
                                                                  --------       --------
   End of period                                                  $  2,406       $  6,485
                                                                  ========       ========
SUPPLEMENTAL DISCLOSURE:
   Noncash issuance of common stock of fair value                 $  1,575       $     --
                                                                  ========       ========
</TABLE>

See notes to condensed consolidated financial statements.

<PAGE>   5
                  BRIGHTSTAR INFORMATION TECHNOLOGY GROUP, INC.
                                AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION

   The accompanying unaudited condensed consolidated financial statements have
   been prepared in accordance with generally accepted accounting principles for
   interim financial information and the instructions to Form 10-Q and Article
   10 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. The consolidated financial statements for the
   three and nine month periods ended September 30, 1999 and the balance sheet
   at December 31, 1998 include the accounts of all BrightStar subsidiaries. The
   statement of operations and cash flows for the nine month period ended
   September 30, 1998 include only the accounts of Brian R. Blackmarr and
   Associates, Inc, the accounting acquirer, from January 1, 1998 to April 17,
   1998, the date of acquisition. In the opinion of management, all adjustments
   (consisting of normal recurring accruals) considered necessary for a fair
   presentation have been included in the financial statements. Operating
   results for the three and nine month periods ended September 30, 1999, are
   not necessarily indicative of the results that may be expected for the year
   ending December 31, 1999. The balance sheet at December 31, 1998, has been
   derived from the audited financial statements at that date but does not
   include all of the information and footnotes required by generally accepted
   accounting principles for complete financial statements. For additional
   information, refer to financial statements and footnotes thereto included in
   the Company's annual report on Form 10-K for the year ended December 31,
   1998.

   Certain reclassifications have been made to conform the prior year's
   financial statement amounts to the current year presentation. Additionally,
   certain costs and expenses amounting to $0.9 million and $1.5 million,
   respectively, for the three and six month periods ended June 30, 1998 and
   $1.4 million for the three month period ended March 31, 1999 that were
   previously included in cost of revenue have been reclassified to selling,
   general and administrative expenses.

2. CREDIT FACILITY

   Effective March 29, 1999, the Company established a $15 million credit
   facility (the "Credit Facility") with Comerica Bank. Under terms of the
   agreement, the Credit Facility will be used for working capital needs,
   including issuance of letters of credit, and for general corporate purposes.
   Borrowings under the Credit Facility bear an interest rate of prime plus
   .25%, or the Eurodollar rate plus 2.5%. The Company will pay a commitment fee
   on unused amounts of the Credit Facility amounting to .375% per annum based
   on the average daily amount by which the commitment amount exceeds the
   principal amount outstanding during the preceding month. Interest is payable
   monthly on prime rate borrowings and quarterly or at the end of the
   applicable interest period for the Eurodollar rate borrowings.

   The Credit Facility is secured by liens on substantially all the Company's
   assets (including accounts receivable) and a pledge of all of the outstanding
   capital stock of the Company's domestic operating subsidiaries. The Credit
   Facility also requires that the Company comply with various loan covenants,
   including (i) maintenance of certain financial ratios, (ii) restrictions on
   additional indebtedness and (iii) restrictions on liens, guarantees and
   payments of dividends. As of, and during the quarter ended September 30,
   1999, the Company was not in compliance with a certain financial covenant.
   Comerica Bank has agreed to waive the default.

   The Credit Facility contains provisions requiring mandatory prepayment of
   outstanding borrowings from the issuance of debt or equity securities for
   cash, excluding certain equity issued in connection with future acquisitions,
   and cash realized in connection with permitted asset sales outside of the
   ordinary course of business. Borrowings outstanding under the Credit Facility
   amounted to $10.8 million at September 30, 1999 at an interest rate of 8.25%.
   The Credit Facility expires on March 30, 2001.

3. RESTRUCTURING

   During the fourth quarter of 1998, the Company announced a plan to
   restructure its operations and recorded a charge of $7.6 million. The plan
   included a reorganization of operations, relocation of the Company's
   corporate office, reduction in workforce, and termination of leases and other
   contractual obligations.


<PAGE>   6
   The major categories of the restructuring charge are summarized below (000's
   omitted):

<TABLE>
<CAPTION>
                                                                             REMAINING
                                                   AMOUNTS CHARGED        AMOUNTS ACCRUED
                                                 TO EARNINGS IN 1998   AT SEPTEMBER 30, 1999
                                                 -------------------   ---------------------
<S>                                              <C>                   <C>
          Workforce severance obligations              $4,960                 $1,813
          Asset writedowns                              1,171                     --
          Lease and other contract obligations          1,483                    950
                                                       ------                 ------
          Total                                        $7,614                 $2,763
                                                       ======                 ======
</TABLE>

   The balance of the restructuring charge will be utilized through the first
   quarter of 2001.

4. INCOME TAXES

   The provision for income taxes for the nine month period ended September 30,
   1999 is based on an estimated effective tax rate of 39%, adjusted for
   non-deductible goodwill amortization and stock compensation expense.
   Additionally, the provision for income taxes reflects a third quarter
   reduction in the deferred tax asset valuation allowance of $0.6 million,
   based upon the estimated utilization of the underlying tax assets. Components
   of net deferred tax assets of $1.0 million at September 30, 1999 principally
   relate to the Company's accounts receivable and restructuring reserves.

5. COMPREHENSIVE INCOME

   SFAS No. 130, "Reporting Comprehensive Income," requires companies to report
   and display comprehensive income and its components in the financial
   statements. Comprehensive income includes all changes in equity during a
   period except those resulting from investment by owners and distributions to
   owners. Due to the effect of the cumulative foreign currency translation
   adjustment, comprehensive income was $0.1 million less than net income
   reported for the nine months ended September 30, 1999. Comprehensive income
   is the same as net income reported in the 1998 period reported.

6. ACQUISITION

   On May 28, 1999, the Company purchased Integrated Systems Consultants, LLC
   ("ISC") pursuant to an Asset Purchase Agreement (the "Agreement"), dated as
   of April 1, 1999. ISC is a provider of SAP consulting services based in
   Phoenix, Arizona. The four principals of ISC each have over five years
   experience leading and completing SAP implementations for mid-tier and large
   global enterprises. The ISC customers include Microsoft, Arch Chemicals and
   the Tessenderlo Group as well as other companies in the high tech, chemical
   and manufacturing industries.

   The aggregate consideration for this transaction was $3.0 million; of which
   $500,000 was paid in cash upon closing; $1,000,000 will be paid on June 1,
   2000 in up to 255,183 shares of common stock, or a combination of cash and
   stock as defined in the Agreement; $500,000 was financed by a Convertible
   Subordinated Promissory Note due August 1, 2000; and, the remaining
   $1,000,000 contingent consideration will be paid subject to the achievement
   of ISC earnings during the twelve months ending March 31, 2000, as defined in
   the Agreement. The Company has allocated the entire purchase price and
   certain other acquisition costs to goodwill.

7. CONTINGENT LIABILITY

   Under the terms of the acquisition of Cogent Technologies, LLC ("Cogent"),
   the Company is required, as additional consideration for the acquisition, to
   make an additional cash payment and issue additional shares of the Company's
   common stock to the prior owners based upon an earn-out calculation. The
   additional purchase consideration will be recorded as goodwill upon transfer.

   ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
   RESULTS OF OPERATIONS

   INTRODUCTION - BrightStar provides enterprise-wide business and technology
   solutions to Global 2000 companies and other large organizations. BrightStar
   provides these services to a diverse client base including but not limited to
   retail, industrial, petrochemical, manufacturing and distribution companies
   and governmental agencies.

   The Company's services and products include Enterprise Resource Planning
   (ERP) software implementation, consulting, software

<PAGE>   7

   and Web application development, systems integration and outsourcing, and
   training as well as upgrades and support related to software products. The
   services are generally performed at clients' locations and also at the
   Company's facilities. In providing ERP implementation and other IT services,
   the Company may assume responsibility for project management and bill the
   client on a time and material or fixed fee basis.

   Revenue is recognized as services are rendered. The timing of revenue is
   difficult to forecast because the Company's sales cycle for certain of its
   services can be relatively long and is subject to a number of uncertainties,
   including clients' budgetary constraints, the timing of clients' budget
   cycles, clients' internal approval processes and general economic conditions.
   In addition, as is customary in the industry, the Company's engagements,
   generally, are terminable without a client penalty. The Companies' revenue
   and results of operations may fluctuate significantly from quarter to quarter
   or year to year because of a number of factors, including, but not limited
   to, the effect of changes in estimates to complete fixed fee contracts; the
   rate of hiring and the productivity of revenue generating personnel; the
   availability of qualified IT professionals; the significance of client
   engagements commenced and completed during a quarter; the number of business
   days in the quarter; changes in the relative mix of the Company's services;
   changes in the pricing of the Company's services; the timing and the rate of
   entrance into new geographic or IT specialty markets; departures or temporary
   absences of key revenue-generating personnel; the structure and timing of
   acquisitions; changes in the demand for IT services; and general economic
   factors.

   Cost of revenue consists primarily of salaries (including non-billable and
   training time) and benefits for consultants. The Company generally strives to
   maintain its gross profit margins by offsetting increases in salaries and
   benefits with increases in billing rates.

   Selling, general and administrative expenses primarily consist of costs
   associated with (i) corporate overhead, (ii) sales and account management,
   (iii) telecommunications, (iv) human resources, (v) recruiting and training.

   RESULTS OF OPERATIONS

   Financial results for the three and nine month periods ended September 30,
   1999 include the operations of all BrightStar companies acquired in
   conjunction with, or subsequent to the date of the IPO. Financial results for
   the nine months ended September 30, 1998 contain only the operations of
   Blackmarr, the accounting acquirer from January 1, 1998 to April 17, 1998,
   the date of acquisition. Consequently, variances between nine month periods
   reflect the combined operations of the BrightStar companies from April 17,
   1998, which was the date BrightStar commenced operations, or later dates for
   companies subsequently acquired. The information herein should be read in
   conjunction with financial and pro forma information contained in the
   Company's 1998 Annual Report on Form 10-K.

   Revenue increased primarily due to new ERP contracts, additional custom and
   web application development projects and business related to acquired
   entities.

   Cost of revenue increased in proportion to the additional ERP and custom
   application development revenue. Cost of revenue as a percentage of revenue
   for the three and nine months ended September 30, 1999 was higher than normal
   as a result of consultant salaries and related costs attributable to certain
   fixed fee contracts that are not billable at normal rates and competitive
   pricing pressures. During the three and nine month periods ending September
   30, 1999, the Company recorded losses amounting to $1.2 million and $1.7
   million, respectively, related to two fixed fee projects which originated
   prior to 1999.

   The increase in selling, general and administrative expenses reflect the
   Company's investment in building its internal infrastructure and field sales
   force.

   Stock compensation is a non-cash expense item related to the issuance of
   stock to certain Founders as a part of the IPO. This amount was amortized
   over a period of 12 months.

   Goodwill amortization relates to goodwill acquired in conjunction with the
   IPO and subsequent acquisitions.

   Income taxes are based on the Company's estimated annual tax rate of 39%,
   adjusted for non-deductible goodwill amortization and stock compensation
   expense. Additionally, during the third quarter, the Company reduced the
   deferred tax asset valuation allowance by $0.6 million based upon estimated
   utilization of the underlying deferred tax assets.


<PAGE>   8
LIQUIDITY AND CAPITAL RESOURCES

   Effective March 29, 1999, the Company established a $15 million credit
   facility (the "Credit Facility") with Comerica Bank. Under terms of the
   agreement, the Credit Facility will be used for working capital needs,
   including issuance of letters of credit, and for general corporate purposes.
   Borrowings under the Credit Facility bear an interest rate of prime plus
   .25%, or the Eurodollar rate plus 2.5%. The Company will pay a commitment fee
   on unused amounts of the Credit Facility amounting to a .375% per annum based
   on the average daily amount by which the commitment amount exceeds the
   principal amount outstanding during the preceding month. Interest is payable
   monthly on prime rate borrowings and quarterly or at the end of the
   applicable interest period for the Eurodollar rate borrowings.

   The Credit Facility is secured by liens on substantially all the Company's
   assets (including accounts receivable) and a pledge of all of the outstanding
   capital stock of the Company's domestic operating subsidiaries. The Credit
   Facility also requires that the Company comply with various loan covenants,
   including (i) maintenance of certain financial ratios, (ii) restrictions on
   additional indebtedness and (iii) restrictions on liens, guarantees and
   payments of dividends. As of, and during the quarter ended September 30,
   1999, the Company was not in compliance with a certain financial covenant.
   Comerica Bank has agreed to waive the default. The Credit Facility contains
   provisions requiring mandatory prepayment of outstanding borrowings from the
   issuance of debt or equity securities for cash, excluding certain equity
   issued in connection with future acquisitions, and cash realized in
   connection with permitted asset sales outside of the ordinary course of
   business. The Credit Facility expires on March 30, 2001.

   During the first half of 1999, the Company borrowed $10.8 million under its
   Credit Facility to finance $3.5 million of additional working capital
   requirements, $2.4 million of equipment additions and $4.9 million of
   payments related to acquisitions.

   The Company intends to continue to pursue acquisition opportunities. The
   timing, size or success of any acquisition effort and the associated
   potential capital commitments are unpredictable. The Company expects to fund
   future acquisitions through the issuance of additional equity, as well as
   through a combination of working capital, cash flow from operations, and
   borrowings under the Credit Facility. Additionally, the Company intends to
   divest its classroom training business in the fourth quarter of 1999.

   The Company believes that cash flow from operations and borrowings under the
   Credit Facility will be sufficient to fund its requirements over the next
   twelve months.

   YEAR 2000 COMPLIANCE - The inability of computers, software and other
   equipment utilizing microprocessors to recognize and properly process data
   fields containing a two-digit year is commonly referred to as the Year 2000
   problem. The Year 2000 problem arises from the way dates are recorded and
   computed in most applications, operating systems, hardware and embedded
   chips. If the problem is not corrected a system that uses a date in its
   prescribed function may fail or produce erroneous results before, on and
   after the Year 2000.

   The Company has completed a review of its businesses to determine whether or
   not purchased and internally developed computer programs are Year 2000
   compliant, as well as to determine the extent of any remedial action and
   associated costs for such programs which are not compliant. Based upon its
   review, the Company plans to complete all remediation efforts for its
   critical systems prior to Year 2000. The Company is also contacting its key
   suppliers and customers to determine their Year 2000 readiness in order to
   ensure a steady flow of goods and services to the Company and continuity with
   respect to customer service.

   The costs of Year 2000 preparation for the Company's products are primarily
   costs of existing internal resources largely absorbed within existing
   spending levels. The costs of the readiness program for internal systems are
   a combination of incremental external spending and use of existing internal
   resources and expertise. The financial impact of the Year 2000 reviews,
   modifications, testing, replacements or related purchases are not expected to
   be material to the Company's business or its consolidated financial position,
   results of operations or cash flows.

   FORWARD-LOOKING INFORMATION - Management's Discussion and Analysis of
   Financial Condition and Results of Operations ("MD&A") includes
   "forward-looking statements" within the meaning of Section 27A of the
   Securities Act of 1933 and Section 21E of the Securities Exchange Act of
   1934. All statements, other than statements of historical facts, included in
   this MD&A regarding the Company's financial position, business strategy and
   plans and objectives of management of the Company for future operations are
   forward-looking statements. These forward-looking statements rely on a number
   of assumptions concerning future events and are subject to a number of
   uncertainties and other factors, many of which are outside of the Company's
   control, that could cause actual results to materially differ from such
   statements. While the Company believes that the assumptions

<PAGE>   9

   concerning future events are reasonable, it cautions that there are inherent
   difficulties in predicting certain important factors, especially the timing
   and magnitude of technological advances; the performance of recently acquired
   businesses; the prospects for future acquisitions; the possibility that a
   current customer could be acquired or otherwise be affected by a future event
   that would diminish their information technology requirements; the
   competition in the information technology industry and the impact of such
   competition on pricing, revenues and margins; the degree to which business
   entities continue to outsource information technology and business processes;
   uncertainties surrounding budget reductions or changes in funding priorities
   or existing government programs and the cost of attracting and retaining
   highly skilled personnel.

                           PART II - OTHER INFORMATION

ITEM 1. Legal proceedings

   None.

ITEM 3. Defaults upon Senior Securities

   See Note 2 to the Condensed Consolidated Financial Statements.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF STOCKHOLDERS

   None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

   None

(b) Reports on Form 8-K

   On June 14, 1999, the Company filed a report on Form 8-K describing its
acquisition of Integrated Systems Consultants pursuant to an Asset Purchase
Agreement dated as of April 1, 1999



<PAGE>   10


                                   SIGNATURES

    Pursuant to the requirements of the Securities Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.

                                       BRIGHTSTAR INFORMATION
                                        TECHNOLOGY GROUP, INC.

      Date: November 12, 1999.            BY: /s/ Michael A. Ober
                                              ----------------------------------
                                                  Michael A. Ober
                                              Chief Executive Officer


                                          BY: /s/ Donald W. Rowley
                                              ----------------------------------
                                                  Donald W. Rowley
                                              Chief Financial Officer

<PAGE>   11

                                INDEX TO EXHIBITS


<TABLE>
<CAPTION>
EXHIBIT
NUMBER          DESCRIPTION
<S>             <C>
  27            Financial Data Schedule
</TABLE>