An IT business analyst is tasked with bridging the gap between the IT and business departments by utilizing data analytics to assess processes, determine IT requirements, and deliver recommendations based on data analysis to top executives and company stakeholders. (CIO.com).
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IT business analysts work with business leaders and users to understand how changes driven by data can be used to change processes, products, services, software, and hardware to enhance efficiencies and add business value. The analyst must articulate the ideas but also balance them against what is technically possible, as well as functionally and financially reasonable.
The IT business analyst also is responsible for devising new technical models that support business decisions by working closely with IT and financial reporting teams to establish initiatives and strategies to optimize costs and improve importing. These analysts need a good understanding of reporting and regulatory requirements and experience in budgeting, forecasting, and financial analysis.
Common duties of an IT business analyst are:
- Creating detailed business analyses, outlining issues, opportunities and solutions for a company
- Forecasting and budgeting
- Variance analysis
- Reporting
- Pricing
- Defining business requirements
Being able to identify and prioritize functional and technical requirements is at the top of the list for an IT business analyst to succeed. A successful professional in this field also should have excellent analytical thinking and problems solving skills; organizational skills; an understanding of stakeholder analysis; and costs benefit analysis skills.
IT Business Analyst Salary Outlook
Working as an IT business analyst entails earning a degree in business combined with a background in IT and computer science. A master’s degree in computer science or IT management may be necessary for top roles. Before you embark on your educational journey, learn more below about your salary potential in this occupation.
Bureau of Labor Statistics
The Bureau of Labor Statistics compiles salary statistics for operations research analysts, which is an occupation similar to IT business analyst. Both jobs require an extensive background in business, IT, and computer science to provide analyses of business processes to enhance efficiencies and profits. (BLS.gov)
The median salary for operations research analysts was $83,390 in May 2018. The lowest 10% earned $46,800 and the top 10% earned more than $136,000 per year. Top industries for operations research analysts were:
- Federal government: $113,900
- Manufacturing: $92,170
- Professional, scientific, and technical services: $86,700
- Management of companies and enterprises: $85,200
- Finance and insurance: $82,300
The field of management analysis also is worth looking at to get an idea of salary potential for IT business analysts. BLS reports the median salary for management analysts is $83,600 with the top 10% earning more than $152,700. Many management analysts work on technical projects within companies and help to streamline IT processes to make the company more efficient.
Top industries for management analysts are:
- Professional, scientific, and technical services: $89,300
- Management of companies and enterprises: $83,400
- Finance and insurance: $83,000
- Government: $78,700
Payscale.com
Payscale.com reports the average salary for IT business analysts is $68,538 with a range between $50,000 and $97,000. (Payscale.com). Reported salaries from various companies are:
- JP Morgan Chase: $79,000
- Accenture: $74,000
- CGI Federal: $60,000
- Cisco Systems: $76,000
- Bank of America: $81,000
- CGI Group: $56,000
- Ford Motor Company: $81,000
- Quicken Loans: $65,000
Popular skills for business analysts in IT are:
- Business analysis: $69,500
- Requirements analysis: $70,900
- Project management: $69,700
- Data analysis: $67,200
- Microsoft Excel: $65,100
Pay as an IT business analyst rises with experience, per Payscale.com data:
- Less than one year of experience: $57,800
- One to four years of experience: $63,700
- Five to nine years of experience: $76,200
- 10 to 19 years of experience: $84,100
- More than 20 years of experience: $88,200
Working in the following cities can net you a higher or lower salary:
- New York City: +12%
- Houston: +6%
- Washington DC: +4%
- Chicago: 0%
- Dallas: 0%
- Atlanta: -3%
- Minneapolis: -3%
Ziprecruiter.com
Ziprecruiter.com reports the average salary for IT business analysts is $90,900 with a range between $34,000 and $138,500. Most in the field earn between $71,000 and $105,500. (Ziprecruiter.com)
Indeed.com
Indeed.com reports an IT business analyst earns an average salary of $76,100. (Indeed.com)
Job Outlook for IT Business Analysts
The Bureau of Labor Statistics reports that the related profession of operations research analyst will grow by a healthy 26% by 2028, which is much faster than average. As technology is improving and companies are trying for more cost savings and efficiency, demand in this field should rise sharply. Also, higher demand will occur for analysts in business analytics to improve business planning and making decisions. (BLS.gov)
Technical advances are making it easier and faster for companies to collect large amounts of data. Also, enhancements in analytical software make business and operations research more affordable and applicable to more areas of business. More organizations will employ IT business analysts and operations research analysts in coming years uses to help them transform data into critical information that managers can use to make better decisions.
Management analysts will see a 14% increase in jobs through 2028, which is also much faster than average. Demand for IT and business consulting services will grow as companies want to control costs and boost efficiency in a highly competitive market. Demand should be especially strong in healthcare, as this industry is seeing higher costs because of the aging US population. More management analysts will be needed to deal with the complex regulatory environment in healthcare. (BLS.gov)
Average IT Business Analyst Salary by State
| State | Hourly Wage | Annual Salary |
|---|---|---|
| New York - IT Business Analyst | $47.32 | $98,427 |
| Massachusetts - IT Business Analyst | $46.98 | $97,718 |
| New Hampshire - IT Business Analyst | $45.84 | $95,347 |
| Maryland - IT Business Analyst | $43.60 | $90,698 |
| Hawaii - IT Business Analyst | $43.40 | $90,271 |
| Connecticut - IT Business Analyst | $43.27 | $90,009 |
| Alaska - IT Business Analyst | $43.27 | $90,004 |
| Montana - IT Business Analyst | $43.27 | $90,004 |
| North Dakota - IT Business Analyst | $43.27 | $90,004 |
| Wyoming - IT Business Analyst | $43.27 | $90,004 |
| Nevada - IT Business Analyst | $43.27 | $90,004 |
| Idaho - IT Business Analyst | $43.27 | $90,004 |
| Vermont - IT Business Analyst | $43.16 | $89,765 |
| Nebraska - IT Business Analyst | $43.07 | $89,590 |
| Washington - IT Business Analyst | $43.05 | $89,538 |
| Rhode Island - IT Business Analyst | $42.60 | $88,614 |
| California - IT Business Analyst | $42.58 | $88,563 |
| Virginia - IT Business Analyst | $42.37 | $88,125 |
| Arizona - IT Business Analyst | $41.91 | $87,183 |
| New Jersey - IT Business Analyst | $41.65 | $86,624 |
| Colorado - IT Business Analyst | $41.10 | $85,482 |
| West Virginia - IT Business Analyst | $41.07 | $85,433 |
| Minnesota - IT Business Analyst | $40.91 | $85,100 |
| Pennsylvania - IT Business Analyst | $40.91 | $85,094 |
| South Dakota - IT Business Analyst | $40.90 | $85,063 |
| South Carolina - IT Business Analyst | $40.84 | $84,937 |
| Tennessee - IT Business Analyst | $40.68 | $84,608 |
| Delaware - IT Business Analyst | $40.66 | $84,569 |
| Oregon - IT Business Analyst | $40.62 | $84,489 |
| Utah - IT Business Analyst | $40.34 | $83,898 |
| Ohio - IT Business Analyst | $40.26 | $83,736 |
| Kentucky - IT Business Analyst | $40.21 | $83,642 |
| Indiana - IT Business Analyst | $39.98 | $83,164 |
| Oklahoma - IT Business Analyst | $39.88 | $82,960 |
| Louisiana - IT Business Analyst | $39.77 | $82,718 |
| Wisconsin - IT Business Analyst | $39.70 | $82,575 |
| Kansas - IT Business Analyst | $39.58 | $82,319 |
| Maine - IT Business Analyst | $39.54 | $82,240 |
| Iowa - IT Business Analyst | $39.45 | $82,053 |
| Texas - IT Business Analyst | $38.79 | $80,680 |
| Georgia - IT Business Analyst | $38.65 | $80,392 |
| Arkansas - IT Business Analyst | $38.50 | $80,088 |
| New Mexico - IT Business Analyst | $38.29 | $79,634 |
| Alabama - IT Business Analyst | $38.00 | $79,041 |
| Michigan - IT Business Analyst | $37.96 | $78,953 |
| Illinois - IT Business Analyst | $37.84 | $78,705 |
| Mississippi - IT Business Analyst | $37.41 | $77,816 |
| Missouri - IT Business Analyst | $37.03 | $77,024 |
| Florida - IT Business Analyst | $36.48 | $75,869 |
| North Carolina - IT Business Analyst | $33.17 | $69,000 |
Source: Ziprecruiter.com, January 2020.
Summary
An analysis of the salary and job data for IT business analysts indicate a strong, growing market for professionals with skills in business management, IT, and computer science. With a few years of experience, you can be making $80,000 per year or more. So if the intersection of business and Internet technology interests you, definitely explore this growing career.