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What is the need to pay for Business Analysis Phase while outsourcing your software development work?

As a customer when you receive an effort estimation from a vendor for your software application development work, such estimation will generally include all stages of SDLC (software development life cycle) such as effort & cost for BA (Business Analysis) plus many other stages. Why should a customer pay Business Analysis Phase ?

What actually happens in the BA (Business Analyses) phase is someone from the Vendor Company will get in touch with the customer, understand & analyse their requirements and document it so the rest of the development team can refer to this document and start working.

So the vendor has now understood your requirement and as customer you are paying someone just to understand your requirement. Why do we need to pay the vendor for understanding our requirement?

Let’s compare this with an example, let’s say we go to a Dentist and explain him about our dental problem or our dental requirement and while doing so the Dentist will also be making note of the same. So the Dentist has now understood our requirement/problem. But he will not charge us for understanding our requirement/problem, instead he will charge us for the solution he provides. Well, the scene is quite similar to earlier scenario but in the earlier scenario we will pay someone to understand our requirement.

Don’t you think that a vendor should understand our requirement completely even before giving a quote and not charge us for the same? Very surprisingly charging the customer for understanding his needs only happens in software service industry and not in any other services.


One way to avoid paying for BA is to prepare a complete requirement document our self & give it to the vendor (but surprisingly many vendors will still charge for BA phase even when you give them the requirement doc & they will give their own explanations for that).

Now the other way of looking at it is when someone includes effort & cost for BA phase in their proposal & as a customer if you award the project to them you would have tied up with someone who don’t even know anything about your requirement which puts a customer in bad situation.

But if you tie up with someone who understands your requirement in prior & then gives you a proposal (who haven’t included cost for BA phase in their proposal) the customer will be in a better situation because he would have tied up with someone who understands the requirements clearly.

Did you like this topic or do you have a different opinion to share? Please leave a comment below or write to us at contact@therealpictures.com


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