How a Business Analyst Cuts Software Development Costs

Maria Boyarko

Maria Boyarko

Head of the BA Department at Andersen

Business Analysis
Sep 22, 2021
7 minutes to read
views
  1. How a Business Analyst affects the project profitability
  2. How a Business Analyst reduces the total cost of a project
  3. Conclusion

According to the consulting company McKinsey, 17% of IT projects are such failures that they lead to the companies’ collapses, 7% are finished behind schedule, and 45% exceed their budgets. To avoid all this, managers include Business Analysts in their development teams. Let's consider facts and figures showing how a Business Analyst can help in reducing the total cost of a project at all stages of a software development life cycle.

How a Business Analyst affects the project profitability

Engaging additional experts in projects means financial costs for companies. But this is not true for the participation of a Business Analyst in the development of a software product. This specialist’s work is aimed at ensuring that the costs invested in the development pay off and bring additional benefits:

  • an increase in the number of users,
  • the popularity of the product in the market,
  • the growth of the company’s income.

The result of the impact of a Business Analyst's work on the project profitability can be calculated as a return on investment (ROI). To explain simply, an ROI is the difference between the value of a solution and its cost.

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In a typical project, good business analysis affects both sides of the above ROI equation. A Business Analyst not only increases the value achieved by solving the business problem but also reduces the project implementation cost.

Most projects have a certain completion date, budget, and scope of work. This trio of time, budget, and scope is often called the project management triangle because when one element is changed, the other two change as well. alt text

Although all three elements are equally important to a project, there is usually one of them, depending on the priorities, which has the greatest impact on the others. In this article, we are interested in how a Business Analyst reduces the cost of a solution - namely the cost of developing, building, and deploying a product.

How a Business Analyst reduces the total cost of a project

Let's consider the five ways a Business Analyst can reduce product development costs.

1. Performing high-quality requirements elicitation

Poor-quality and constantly changing requirements and inaccurate specifications complicate the project. Much of its success depends on well-written documentation.

According to data by Forrester, poorly defined business goals and product requirements result in 66% of projects failing and $30 billion in annual costs for US firms. If the requirements are def