As companies lean into smarter decision-making and tech-powered growth, one thing becomes clear: data isn’t just an asset—it’s a competitive edge. But as data becomes more central to operations, a common question emerges: Do you need a business analyst or a data analyst?
At first glance, these roles might seem interchangeable. Both work with data, both support decision-making, and both play a critical role in driving business outcomes. But dig a little deeper, and you’ll find that they approach problems from very different angles.
Whether you’re building a lean startup team or scaling a growing enterprise, understanding the key differences between business analysts and data analysts can help you hire the right person for the job—and avoid costly misalignment down the line.
In this guide, we’ll break down what each role actually does, how they complement each other, and when to hire one over the other. If you're navigating the ever-growing talent pool and trying to figure out which analyst your company truly needs, you're in the right place.
What does a business analyst do?
A business analyst is the bridge between your company’s goals and the solutions that help you reach them. Think of them as professional problem-solvers who translate complex business needs into clear, actionable strategies.
Rather than diving deep into datasets, business analysts focus on identifying inefficiencies, spotting opportunities for improvement, and helping different teams align around a shared vision. They talk to stakeholders, document business processes, and define the requirements for new systems, workflows, or products.
Here’s what a business analyst typically does:
- Works with stakeholders to understand business goals and pain points
- Analyzes existing processes and suggests improvements
- Translates business needs into technical requirements
- Creates documentation like business cases, process maps, and use cases
- Collaborates with developers, designers, and project managers to ensure solutions meet business expectations
- Tracks KPIs to measure the success of new initiatives
While they often use tools like Excel, Visio, and Tableau, business analysts focus more on why a change is needed and how it will impact the business than on crunching numbers themselves.
In short, if your company is facing strategic decisions, inefficient workflows, or the need to align tech with business outcomes, a business analyst is your go-to guide.
What does a data analyst do?
A data analyst turns raw numbers into meaningful stories. While a business analyst focuses on what the company should do next, a data analyst digs into the data to explain what’s happening now—and why.
Their mission? To help businesses make informed, data-backed decisions. Data analysts are the ones cleaning up messy spreadsheets, uncovering hidden trends, and visualizing complex information in a way that makes sense to everyone, from marketers to executives.
Here’s what a data analyst typically does:
- Collects, cleans, and organizes large data sets from various sources
- Uses statistical methods to identify patterns, trends, and correlations
- Creates dashboards and reports to share insights with decision-makers
- Helps departments measure performance and optimize strategies
- Works with tools like SQL, Python, Excel, Power BI, R, and Tableau
- Transforms business questions into analytical queries and answers
Unlike business analysts, data analysts spend more time in the weeds of the data—writing queries, running regressions, and building visualizations that explain what’s really going on behind the scenes.
If your company is sitting on a mountain of data but struggling to make sense of it, hiring a data analyst could unlock game-changing insights.
Key differences between business analysts and data analysts
While business analysts and data analysts often collaborate and share overlapping skills, their core responsibilities and goals are quite distinct. Understanding these differences can help you avoid hiring mismatches and ensure your team has the right expertise to move forward efficiently.
At a high level:
- Business analysts focus on aligning business needs with solutions. They zoom out to evaluate processes, goals, and organizational strategy.
- Data analysts, on the other hand, zoom in—diving deep into the numbers to uncover trends, build reports, and answer performance questions.
They also differ in the types of questions they answer. A business analyst might ask, “How can we improve our customer onboarding process?” while a data analyst might explore, “Which onboarding steps have the highest drop-off rates?”
Let’s break this down in a side-by-side comparison:
As you can see, the distinction isn’t just about job titles—it’s about approach, tools, and impact. Business analysts thrive in strategy and stakeholder engagement, while data analysts shine when uncovering the story hidden in your spreadsheets.
If you’re deciding which one to hire, this comparison is a powerful lens to see who best fits your current business needs.
Which role does your company need?
Now that you know what business analysts and data analysts do—and how they differ—the big question remains: Which one should you hire? The answer depends on your company’s goals, stage of growth, and the challenges you’re currently facing. Here’s how to decide.
You likely need a business analyst if:
- You’re about to implement new software or tools and need someone to align tech with business goals
- Your workflows are inefficient or misaligned across teams
- You need someone to gather stakeholder input and turn it into actionable project requirements
- You're launching a new product or service and need cross-functional clarity
- You’re scaling and need someone to translate business strategy into operations
A business analyst is your go-to if you’re seeking big-picture clarity and someone to lead process improvements from a business-first perspective.
You likely need a data analyst if:
- You’re collecting lots of data but not using it to guide decisions
- Your team is struggling to track KPIs, customer behavior, or marketing performance
- You want to build dashboards or automated reports
- You’re experimenting with A/B testing, cohort analysis, or forecasting
- You need insights to drive product, marketing, or operational strategies
A data analyst is the right fit when your business is data-rich but insight-poor, and you need someone to turn those numbers into a clear narrative.
In some cases, you may need both roles
Larger or rapidly growing companies often benefit from having both roles on the team. A business analyst ensures that the right questions are being asked, while a data analyst ensures those questions are being answered with accuracy and depth. Together, they create a powerful loop of strategic thinking and evidence-based decision-making.
Tips for hiring the right analyst
Whether you're bringing on a business analyst or a data analyst, making the right hire can unlock huge value for your company. But these roles require different skill sets, mindsets, and ways of working, so your hiring process should reflect that.
Here’s how to ensure you choose the right analyst for your needs:
1. Clarify the problem you're solving
Start by asking: What is the core challenge we need help with?
If it concerns process improvements, project requirements, or stakeholder alignment, lean toward a business analyst. If it’s about data visibility, performance metrics, or predictive insights, a data analyst is more likely your match.
2. Tailor your job description accordingly
Avoid vague, hybrid job posts that ask one person to “analyze business needs and code in Python.” Be clear about what outcomes you expect from the role.
- For a business analyst, highlight communication, documentation, and stakeholder collaboration.
- For a data analyst, emphasize technical skills, data wrangling, and visualization tools.
3. Screen for the right skills
Ask candidates to walk you through a real-world problem they’ve solved.
- Business analysts should explain how they mapped a workflow or aligned different departments.
- Data analysts should show how they found trends, built dashboards, or influenced a decision with data.
Also, look for their comfort with relevant tools—whether it’s SQL and Tableau, or Visio and Jira.
4. Don’t overlook soft skills
Both roles require strong communication. Business analysts need to be exceptional translators between technical and non-technical teams, while data analysts must present complex insights in a way that drives action.
If a candidate can’t clearly explain what they do and why it matters, it’s a red flag—no matter how impressive their resume.
5. Consider remote talent from LATAM
If you’re open to remote hires, Latin America offers a deep pool of experienced business and data analysts at competitive rates. Time zone alignment, cultural compatibility, and strong English proficiency make LATAM an ideal region for hiring high-impact analysts without the overhead of local hires.
Business analyst vs. data analyst salary comparison
Cost is always a key consideration when hiring, especially if you're choosing between two valuable (but distinct) roles. While business analysts and data analysts may sit at similar organizational levels, their salary expectations can differ depending on location, experience, and technical expertise.
Average salaries in the U.S.
- Business Analyst: $75,000 – $110,000/year
- Data Analyst: $70,000 – $105,000/year
In general, business analysts may command slightly higher salaries at senior levels, especially if they’re experienced in product development, digital transformation, or cross-departmental strategy.
Data analysts, on the other hand, may earn more if they bring advanced technical skills like machine learning, Python scripting, or experience in large-scale data warehousing.
Remote talent from Latin America (LATAM)
For companies open to hiring remotely, Latin America presents an excellent opportunity to reduce costs without sacrificing quality.
Here’s what you might expect for full-time remote roles based in top LATAM countries:
- Business Analyst: $25,000 – $50,000/year
- Data Analyst: $20,000 – $45,000/year
With strong English proficiency, overlapping time zones, and a growing talent pool of professionals familiar with U.S. business culture, LATAM analysts offer exceptional value, especially for startups and scaling teams.
Hiring remotely also opens the door to flexible contracts, easier scaling, and access to talent that might otherwise be out of budget locally. Whether you need strategic insights, data-driven reports, or both, considering international talent can stretch your hiring dollars further.
The Takeaway
Choosing between a business analyst and a data analyst isn’t just a hiring decision—it’s a strategic one. While both roles are rooted in analysis and insight, they serve very different purposes. One helps you understand what’s going on in your data; the other helps you decide what to do with it.
If your business needs clearer processes, better stakeholder alignment, or support during system implementations, a business analyst is your best bet. If you're drowning in data and need someone to extract meaning from the numbers, a data analyst can bring the clarity you’re missing. And if you need both? That’s a sign of a company that’s ready to level up.
Are you now ready to hire the right analyst? At South, we specialize in connecting U.S. companies with top-tier Latin American business and data analysts who deliver results, without the high costs of local hires. Whether you're building your first remote team or expanding a growing one, we’ll help you find the right match, fast.
Schedule a free call with us today and start interviewing pre-vetted LATAM talent in days, not weeks!
Frequently Asked Questions
Can one person do both business and data analysis?
In smaller teams or startups, a hybrid role is possible, but it’s rare for one person to excel at both. Business analysts and data analysts require different mindsets: one is strategic and process-oriented, the other technical and data-focused. Trying to merge both roles often leads to burnout or shallow execution on both fronts.
How do business analysts and data analysts work together?
They can be a powerful duo. A business analyst identifies the questions or business needs, while a data analyst dives into the numbers to find answers. Together, they align business goals with data-driven solutions, ensuring smart decisions based on real insights.
Is a business analyst more senior than a data analyst?
Not necessarily. Seniority depends on the organization, not the title. That said, business analysts are often positioned closer to executive decision-making and may take on more cross-functional leadership, while data analysts might report into more technical or operational departments.
Which role is better for remote work?
Both roles work well remotely, especially when hiring from LATAM. Business analysts need strong communication tools for stakeholder collaboration, while data analysts benefit from uninterrupted time to dive into datasets. Either way, remote setups with clear processes can be highly effective.
What’s the career path for each role?
- Business analysts often move into roles like product manager, project manager, or business strategist.
- Data analysts may evolve into data scientists, BI analysts, or analytics leads, especially if they expand their coding and modeling skills.
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