Outsourcing and the Business Analyst

Outsourcing has been a hot topic over the past few years particularly during these challenging financial times. The media and corporations throughout North America constantly discuss the advantages and disadvantages of outsourcing. Can an organization source its Business Analyst functions outside the organization? If so, should it be outsourced?

Author Kathleen Hass has an interesting interpretation in her book “Professionalizing Business Analysis; Breaking the Cycle of Challenged Projects”. Her interpretation is that: 

“IT managers are realizing that technical skills can be relatively easy to outsource, but that they cannot abdicate control of their business requirements.  In virtually every organization, the elevated leadership role of the business analyst is beginning to shape the future of business transformation¹.” (Hass, 2008, p. 7) 

In reviewing this quote, it is an interesting perspective on the role of Business Analysts. Kathleen Hass makes an effective argument that the role should not be outsourced due to how crucial the business requirements are to the competitive advantage and success of an organization². 

Kathleen Hass further explains that Business Analysts are taking more of a leadership role within the organization. While technical expertise is required, they are insufficient for managing requirements on the complex, enterprise-wide projects of today.  As the move in IT goes from efficiency to business effectiveness, the Business Analyst becomes the central figure on the project team who is bilingual in both the business and technical languages. The Business Analyst must have a broad range of knowledge, skills, and competencies. If this liaison is not in place between the business and IT departments, poorly defined requirements result in gaps between what the business needs and what is delivered³. 

While I agree that business requirements are an imperative component to a project, I am not convinced that outsourcing the Business Analyst role should not be an option.  I agree that artifacts such as the business requirements belong to the organization; however, it is certainly possible (and in several instances beneficial) for this function to be outsourced.  If you look at the role a Business Analyst has on a project, the specific functions will vary from project-to-project, however, the primary role is to elicit and manage requirements. While an internal Analyst likely has a stronger understanding of the business initially, the capabilities to effectively elicit and manage requirements are skills that can easily come from an external consultant experienced in business analysis.  Ideally, the outsourced Business Analyst should be on location during the requirements elicitation although one can easily gather requirements from a remote office, or even from another time zone. While this presents challenges in communicating, the vast array of communication solutions overcomes these challenges almost seamlessly. 

I do agree with Kathleen Hass that Business Analysts are taking more of a leadership role within the organization. It is becoming imperative that a Business Analyst have a broad range of knowledge, skills, and competencies where requirements elicitation and management are crucial components for project success. Therefore, an Analyst must ensure that the requirements are complete, clear, and effectively capture the needs of the business. 

To answer the question on whether the Business Analyst role should or should not be outsourced, it really depends upon the situation. If the organization deems that, an Analyst must be internal and expects them to continue supporting the application or processes after implementation, then fill the role internally. Otherwise, it may be beneficial to outsource the role as the organization can quickly benefit from Consultants who have extensive experience in the crucial tasks of eliciting and managing requirements. 

In summary, I believe it is both possible, and in several cases beneficial, for the Business Analyst role to be outsourced. While Business Analysts are taking more of a leadership role, it is completely possible for an outside organization to handle the role located either within the same time zone or even outside of it. If the Business Analyst must be internal and will continue to manage the process after the implementation, then keep the role internal; otherwise consider outsourcing the role.

¹ Hass, Kathleen B., Professionalizing Business Analysis: Breaking the Cycle of Challenged             Projects., 2008. Vienna, Virginia: Management Concepts.
² Ibid
³ Ibid