Business analyst, which the IIBA (International Institute of Business Analysis) describes as “an agent of change,” statistically analyze large data sets to identify effective ways of boosting organizational efficiency. From leveraging data analytics for assessing processes and determining requirements to delivering policy recommendations, business analysts fill the vacuum between enterprises and their IT departments with actionable, data-driven insights that improve decision-making capabilities.  

Business analysts are prized for their analytical skills in comprehending how data-focused strategies add value to an organization's bottom line — including its processes, services, hardware, software, and products. The business analyst job description also requires strong business acumen and organizational abilities to balance strategies against what is functionally, technologically, and financially feasible.

To become more data-focused, agile, and competitive in this age of digital disruption, organizations are increasingly relying on business analysts for guidance on best practices and innovative technologies. This is dramatically supercharging the demand for business analysts in a variety of emerging roles. According to the US Bureau of Labor Statistics, the demand for business analysts is expected to see a 14 percent increase by 2024, which is the highest average percentage among growing professions.

Business Analyst Job Description

A Business Analyst is a professional who identifies goals, develops best practices for data collection, and analyzes current processes so that they may be improved to the greatest extent possible.

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Business Analyst Roles and Responsibilities

While business analyst roles and responsibilities involve several aspects, the primary role of a business analyst is to make changes within an organization. The solution-oriented changes improve an organization's overall efficiency, including process optimization, cost reduction, and identifying fresh business opportunities. 

Business analysts accomplish this through research-gathering and data analysis, presenting a range of data-driven solutions, and thereafter implementing those solutions and optimizations using analytics tools and technologies.

Business Analyst Responsibilities

Business analyst responsibilities include extensive knowledge in financial analysis, forecasting, and budgeting, as well as having a clear understanding of reporting and regulatory requirements, key success factors, and performance indicators. 

Here is an outline of the business analyst job description, which will give aspiring business analysts an idea of the duties they need to perform: 


The ability to work with colleagues and stakeholders to gain an in-depth understanding of critical business requirements.

Data Analysis Skills

The ability to analyze data models to deliver logical conclusions.

Problem-solving Skills

Developing innovative solutions for operational and strategic changes, which is a business analyst's primary role.

Knowledge of Business Analysis Process 

Being proficient in inventing processes or systems needed to implement changes.

Communication Skills

Strong communication and interpersonal skills to interact with senior-level management regarding the implementation of changes.

Sound knowledge and expertise in evaluating the implications of changes.

Competence in writing reports and making presentations to highlight the effect of changes you made

Report Making

Conducting tests, surveys, and workshops will be a part of your daily activity

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Skill Sets That Are In Demand And Essential Part Of The Business Analyst Job Description

Considering that the business analyst role is crucial in today’s ever-changing business landscape, there’s a high demand for skilled talent to fill this role in organizations across the world. 

If you are planning to start your career in this field, it is worth noting that business analyst job descriptions often include specialized skills and baseline skills, such as:

Technical Skills

To identify business solutions, business analysts should be fully aware of existing technology platforms and emerging technologies to determine potential outcomes they can achieve through current applications and new offerings. Designing business-critical systems and testing software tools are also crucial technical skills, and common requirements in business analyst job descriptions today. 

Communication Skills

The nature of a business analyst job involves interacting with developers, clients, end-users, and management. A project's success depends on how clearly business analysts communicate details like requested changes, testing results, and project requirements. Fluency in communication is a must-have skill for any business analyst.

Analytical Skills

A business analyst's skill set should include superior analytical skills to interpret and translate the needs of customers into operational processes. Most Business analyst job descriptions include excellent analytical skills to analyze documents, data, user surveys, and workflows, which will deliver problem-solving solutions, as must-haves.

Decision-Making Capabilities

Sound decision-making skills are mandatory requirements in any business analyst job description. Business Analysts should be capable of assessing inputs from stakeholders, analyzing a situation, and selecting the right plan of action. In terms of its survival ability and sustaining profits, the viability of an organization will depend significantly on the decision-making skills of business analysts.

Managerial Skills

From planning the scope of a project and directing a workforce, to forecasting budgets and managing change requests, as well as monitoring time constraints, these are just some aspects of the business analyst job description. Being an interdisciplinary job role, business analysts should possess high-level managerial skills to handle projects from beginning to end.

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Salary of a Business Analyst 

Expect to be well compensated and enjoy highly rewarding experiences if you succeed in breaking into this career field. According to the latest data from, a business analyst in the US earns an average annual base salary of $73,945, while for a business analyst based in India, the average salary is ₹750,500 yearly. 

After one to five years, most entry-level business analysts make headway into advanced positions as senior business analysts or project managers. However, experience level, location, and industry will greatly influence how much you make as a business analyst. Those in the financial or technical field are known to earn more than their peers in other fields.

How to Become a Business Analyst 

Business Analyst job descriptions often require multi-functional expertise. Beyond your undergraduate academic degree in finance, accounting, or business administration, you should also learn computer programming, which will enhance your technical skills and play a key role in strengthening your career as a business analyst. 

Regardless of whether you are studying or working, the BABOK (Business Analysis Body of Knowledge) reference book is recommended by experts as a brilliant resource to know the tricks of the trade before venturing into the real world of business analysis. 

A sure-fire way to carve a career path in this field is to pursue a business analyst certification course. At Simplilearn, we are a premier educational institution that offers one of the best virtual programs for aspiring business analysts. Learn more about how anyone can gain a business analyst certification.

Check out the video below that explains who is a business analyst and what a business analyst does.

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1. What is a business analyst?

A business analyst is an individual who statistically analyzes large data sets to identify effective ways of boosting organizational efficiency. Using data analytics, a business analyst derives meaningful insights to help improve business decisions.

2. Is Business Analyst an IT job?

While a business analyst acts as a liaison between IT and the executive branch, understanding analyzed data to drive business decisions, they don’t always fall under an IT job. If a business analyst has specialized in the IT field, then they are known as IT Business Analysts.

3. What are the three main roles of a business analyst?

The three main roles of a business analyst are to analyze data models and derive logical conclusions, develop innovative solutions for operational and strategic changes, and budget and forecasting to ensure that costs do not exceed the limit.

4. What is the average salary of a business analyst in India?

The average salary for a business analyst based in India is ₹750,500 annually.  

5. What is the average salary of a business analyst in USA?

The average salary for a business analyst based in the USA is around $73,945 annually.

6. What does a Business Analyst do?

A business analyst analyzes large data sets to identify effective ways of boosting organizational efficiency. Using data analytics, they derive logical conclusions and forecasts from implementing strategies that can improve business performance.

7. What are the duties and responsibilities of a Business Analyst?

The basic responsibilities of a business analyst include working with colleagues and stakeholders to gain an in-depth understanding of critical business requirements; analyzing data models to deliver logical conclusions; developing innovative solutions for operational and strategic changes; being proficient in inventing processes or systems; and conducting tests, surveys, and workshops to ensure positive outcomes.

8. What makes a good Business Analyst?

A good business analyst is a strong communicator, problem solver, and critical thinker. They are required to come up with innovative and out-of-the-box solutions to problems. 

9. Who does a Business Analyst work with?

Business analysts work with upper management, colleagues, and stakeholders to ensure that all parties are okay with implementing solutions.

10. What are the 3 most important skills of a business analyst?

The 3 most important skills that a business analyst should possess are good communication, innovation, and being a problem solver.

About the Author


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