8-K

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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

               CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

      Date of Report (Date of earliest event reported):  December 13, 2001

                               THE IT GROUP, INC.
             (Exact Name of Registrant as Specified in its Charter)

                                                            

         Delaware                     1-09037                       33-0001212
(State or Other Jurisdiction   (Commission File Number)  (IRS Employer Identification
     of Incorporation)                                                  No.)



           2790 Mosside Boulevard
         Monroeville, Pennsylvania                            15146-2792
  (Address of Principal Executive Offices)                    (Zip Code)

       Registrant's telephone number, including area code: (412) 372-7701

                                      None

         (Former Name or Former Address, if Changed Since Last Report)

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Item 5.     Other Events.

     The Registrant made an announcement today regarding the status of its
recovery efforts, that it would not be in compliance with the financial
covenants of its senior secured credit agreement at December 28, 2001, and that
it was working with its senior lenders to reach a satisfactory financial
arrangement.

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits

(c) Exhibits

Exhibit No.                           Description

99.1           Press Release, dated December 13, 2001, announcing the status of
               its recovery efforts, that it would not be in compliance with the
               financial covenants of its senior secured credit agreement at
               December 28, 2001, and that it was working with its senior
               lenders to reach a satisfactory financial arrangement


                                   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 hereunto duly authorized.


                                             THE IT GROUP, INC.



Date: December 13, 2001                      By: /s/ James M. Redwine
                                                --------------------------------
                                                 James M. Redwine
                                                 Vice President,
                                                 Senior Corporate Counsel and
                                                 Assistant Secretary

                                       3


                                 Exhibit Index


Exhibit No.                              Description

99.1           Press Release, dated December 13, 2001, announcing the status of
               its recovery efforts, that it would not be in compliance with the
               financial covenants of its senior secured credit agreement at
               December 28, 2001, and that it was working with its senior
               lenders to reach a satisfactory financial arrangement

EX-99.1

[LETTERHEAD OF IT GROUP]


N E W S  R E L E A S E

Release Date:  FOR IMMEDIATE RELEASE

Investor Contact:  Richard R. Conte (412) 372-7701
Media Contact:  William L. Mulvey (412) 372-7701

THE IT GROUP ANNOUNCES RECOVERY PLAN PROGRESS AND OUTLOOK

Pittsburgh, Pennsylvania -- December 13, 2001 -- The IT Group, Inc. (NYSE: ITX)
(the Company) announced today that it is implementing the first steps of its
previously announced Recovery Plan.  These steps include:

     .    Fourth quarter workforce reductions of over 400 personnel to date,
          with additional reductions planned for 2002

     .    The initial phase of the closure and downsizing of approximately 22
          facilities

     .    Accelerated settlements and collections on disputed claims

     .    Expanded efforts to monetize assets

     .    The implementation of new guidelines for contract pricing

     .    The initiation of a comprehensive review of the Company's working
          capital

While management expects these and other actions to improve The IT Group's
performance, the Company has continued to experience weak operating conditions
during the fourth quarter of 2001.  Consequently, the Company has concluded that
it will not be in compliance with the year-end financial covenants of its Senior
Secured Credit Agreement.  Management continues to explore all its strategic
options with its financial advisors, Lehman Brothers and UBS Warburg.  The
Company is in contact with its senior lenders to notify them of the expected
shortfall and to explore alternatives to remedy the situation and to address
ongoing severe liquidity problems.  The Company is working with its senior
lenders to reach a satisfactory financial arrangement.

The Company remains committed to delivering the highest level of service to its
customers while this difficult situation is being resolved.

The IT Group addresses the infrastructure and environmental needs of both
private and public sector clients as a leading provider of diversified services,
including environmental, engineering, facilities management, water,
construction, emergency response, remediation, liability transfer


and information management. Additional information about The IT Group can be
found on the Internet at www.theitgroup.com. The IT Group's common stock and
depositary shares are traded on the New York Stock Exchange under the symbol ITX
and ITXpr, respectively.

Statements regarding the intentions, beliefs, expectations or predictions of The
IT Group, Inc. (the Company) and its management, including, but not limited to,
those statements denoted by the words "anticipate," "believe," "expect,"
"should," "confidence" and similar expressions, are forward-looking statements
that reflect the current views of The IT Group and its management about future
events and are subject to certain risks, uncertainties and assumptions. Actual
results could differ materially from those projected in such forward-looking
statements as a result of a number of factors, including, but not limited to,
the effects of worsening economic conditions, the pending results of our
recovery efforts, the effects terrorist attacks may have on our business and on
the economy generally, our ability to do business with qualified subcontractors,
vendors and financial institutions as well as to retain qualified personnel, our
ability to obtain borrowing and bonding capacity, and governmental and private
customers' desires to continue to do business with us in light of our current
liquidity and financial performance, attempts by creditors generally to collect
amounts due from us, the remaining value of and our success in selling assets,
our ability to attract new investors on a timely basis, our ability to reach
satisfactory arrangements on a timely basis with our lenders (including with
respect to amendments and waivers of financial covenants in our credit
agreements) and the holders of our equity and debt, our ability to pay
subcontractors and vendors on government projects after receipt of payments from
the government, competition and pricing pressures, bidding opportunities and
success therein, the ability of the Company to negotiate and otherwise realize
the amounts of project and legacy claims, the ability to manage subcontracted
work, the ability to manage costs and margins, the availability of Federal
funding in the Company's businesses, management of the Company's cash resources,
particularly in light of the Company's substantial leverage, the status of our
efforts to comply with applicable laws and regulations, funding of backlog,
matters affecting contracting and engineering businesses generally, such as
seasonal work, the impact of weather and clients' timing of projects. For
further information, please review "Management's Discussion and Analysis of
Results of Operations and Financial Condition," in the Company's Report on Form
10-K for the year-ended December 29, 2000, Report on Form 10-Q for the quarter
ended September 28, 2001 and the Company's Current Reports on Form 8-K dated
November 13 and 30, 2001.