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Key Takeaways
- Business analysts focus on improving processes and aligning stakeholders, while data analysts examine raw data to uncover trends and guide decisions—each requires distinct skill sets and solves different business problems.
- Hire a business analyst for process improvements, a data analyst for trend analysis, and a business intelligence analyst for data-driven reporting—hiring all three provides a full-scale approach to data-driven planning and operations.
- Talent shortages and high salary expectations in the US make hiring these roles prohibitive for many businesses, but nearshoring to Latin America provides access to qualified analysts at 30–70% lower costs while maintaining time zone alignment and cultural compatibility.
So, you need someone to make sense of your business data. Maybe your analytical skills are decent, but you really need a data professional to take things further.
But then there’s the question of choosing between a business analyst vs. data analyst. While these roles sound similar (yes, they both analyze information), their focus and responsibilities aren’t the same.
This article explores what makes a business analyst and data analyst different from each other, when to hire each, and what to look for in a candidate. We’ll also compare both roles to business intelligence analysts and go over salary comparisons to help you make the right call.
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Key Differences Between a Business Analyst and a Data Analyst
Perhaps you’ve tried relying on instincts and experience, but sales started to dip after a few months. Well, making strategic business decisions purely on intuition can be risky.
Data-driven decision-making (DDDM) helps companies reduce uncertainty by using data to guide strategy, improve efficiency, and minimize risks.
Analysts play a crucial role in this process, with different types of analysts specializing in specific areas. Among them are business analysts (BAs) and data analysts (DAs). Let’s go over them.
Business analysts
A business analyst (BA) works on improving business processes, strategy, and efficiency. Unlike other analysts, BAs bridge the gap between business teams and technical teams, aligning solutions with business goals.
Business analyst responsibilities include:
- Identifying inefficiencies and recommending improvements
- Defining and documenting business requirements to clarify project objectives
- Conducting market and competitor analyses to keep businesses competitive
- Evaluating the impact of business decisions using performance metrics
Data analysts
Meanwhile, a data analyst (DA) focuses on collecting, analyzing, and interpreting data to uncover insights that drive business decisions.
Data analyst responsibilities involve:
- Collecting and cleaning large datasets to prepare them for analysis
- Performing statistical analysis and identifying trends to inform business decisions
- Creating dashboards and reports for stakeholders
- Measuring business performance by tracking key performance indicators (KPIs) and analyzing data-driven results
Some data-driven businesses need both BAs and DAs to work together. A business analyst defines the problem and recommends improvements, while a data analyst provides insights to support those recommendations. Business analysis often relies on insights from data analysis to pinpoint issues and develop solutions.
Is a business analyst the same thing as a business intelligence analyst?
At first glance, business analytics and business intelligence sound interchangeable. But are they? Not exactly.
A business analyst focuses on solving business challenges, working with stakeholders to define solutions and measure success. A business intelligence analyst (BIA), on the other hand, takes raw data, analyzes trends, and presents insights that shape strategy.
Some businesses thrive with just one. Others benefit from both—using business intelligence to extract and present insights and business analytics to interpret those insights to drive decision-making and future strategies.
Skill Set Comparison: What to Look for When Hiring
Finding the right candidates starts with understanding the skill set needed for each role. A well-defined business or data analyst job description should outline the right mix of technical and business skills to make sure that they align with your company’s goals.
Below is a side-by-side comparison of core skills unique to business analyst, data analyst, and business intelligence analyst roles:
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When to Hire a Business Analyst vs. a Data Analyst vs. a Business Intelligence Analyst
Each role serves a distinct purpose, whether to help improve processes, effectively analyze raw data, or transform information into strategic reports. In some cases, combining two or all three roles can provide the most value.
It’s all about identifying the challenges you’re facing and the type of insights you need.
When to hire a business analyst
A business analyst’s goal is to understand the way you operate your business and find opportunities to improve it. Consider hiring a BA when:
- You need to analyze current workflows and identify areas for improvement.
- Your team needs help gathering, documenting, and structuring business requirements for new projects.
- You need someone to translate business needs into technical requirements to align stakeholders and developers.
When to hire a data analyst
The data analyst’s role is exactly what it sounds like—analyzing data to extract actionable insights. Hire a DA when:
- Your company wants to leverage data to inform strategic decisions and identify trends.
- There’s a need to analyze KPIs to assess business performance.
- You aim to identify customer behavior, market trends, or product performance through data analysis.
When to hire a business intelligence analyst
Business intelligence analysts can transform data into strategic insights through visualization and reporting. You need a BIA when:
- Your organization requires interactive dashboards and comprehensive reports to monitor business metrics.
- There’s a need for comprehensive data-driven insights to support long-term strategic planning and forecasting.
- You want to consolidate data from various sources to provide a unified view of business performance.
While hiring one of these roles can be enough, hiring two or all three ensures a well-rounded approach for complex projects requiring process improvements, deep analysis, and strategic insights.
Once you’ve determined which role(s) best suit your needs, the next step is hiring.
In-house recruitment gives you full control, but for some growing businesses, the hiring process itself can get costly and very time-consuming. Partnering with a recruitment agency specializing in sourcing data analysts or BAs and BIAs can fast-track the process, giving you access to pre-vetted candidates who match your exact requirements.
Check out our article Need to Hire a Data Analyst? Here’s Everything You Need to Know for insights into hiring for an analyst role.
Salary Comparison of a Business Analyst, Data Analyst, and Business Intelligence Analyst
Analyst salaries vary depending on experience and industry. While all three roles share some responsibilities, their salaries reflect their unique skill sets and the demand for their expertise.
Hiring within the US often comes with higher costs due to local salary expectations and a shortage of talent in the job market. With demand outpacing supply, businesses may face longer hiring timelines and increased competition for skilled professionals.
Offshore hiring—especially in regions with lower costs of living—can offer cost efficiency and access to additional talent pools.
For example, nearshore hiring is a great choice. US companies that hire talent from Latin America (LatAm) benefit from overlapping time zones, cultural alignment, and more competitive rates without sacrificing quality.
Using our US vs LatAm salary guide, here’s how salaries compare for senior analysts:
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Final Thoughts
The right analyst depends on your needs:
- A business analyst improves processes and aligns teams
- A data analyst uncovers trends and drives data-backed decisions
- A business intelligence analyst turns data into strategic insights through dashboards and reports
While you might choose to hire for more than one of these roles for both efficiency and informed decision-making, hiring a full in-house analytics team can exhaust your budget.
This is exactly why many forward-thinking companies are turning to Latin America. The region has an incredible pool of data professionals with the same qualifications and experience you’d find in the US, but at a much lower cost. We’ve seen businesses save 30–70% on salary costs while getting analysts who integrate seamlessly with their teams due to time zone alignment and strong cultural fit.
If you’re struggling to find the right analytics talent or if the US salary expectations are stretching your budget too thin, it’s worth considering this approach. The best data insights shouldn’t be limited to companies with the deepest pockets.
At Near, we can connect you with remote LatAm data analysts, business analysts, and business intelligence analysts who offer a range of expertise and experience levels, from junior to senior analysts, including leadership roles.
Book a free consultation call today to learn how Near can supercharge your team with top performers and save you up to 70% on costs through nearshore hiring.
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