The worldwide business process outsourcing market will reach $682.5 billion in the year 2008, according to a study by analyst firm IDC.

The study presents an update to the five-year forecast for the worldwide market for BPO services. It also focusses on the trends and events influencing opportunities in the BPO market and identifies future growth areas within each BPO functional segment.

The study entitled 'Worldwide and US Business Process Outsourcing 2004-2008 Forecast and Analysis' answers the questions about key buyer and vendor trends within each BPO market and their impact on the market forecasts.

It also tells about the key growth areas and opportunities to expect in each BPO market for 2004 and beyond.

IDC's research points to a BPO market that is exciting, brimming with opportunities, and yet, complex and challenging.

"There is a definite surge in interest for BPO in today's economic climate," said Romala Ravi, programme manager, BPO Services.

"At the same time, companies' expectations and demands of BPO providers have escalated, and the lens through which BPO engagements are being evaluated has become much more sharply focused. Though the rewards are potentially substantial, the path to success in the BPO market will be fraught with challenges, necessitating focus and long-term commitment on the part of BPO providers," Ravi said.

The BPO market is really made up of many individual markets, each with its own nuances, unique opportunities and challenges.

For the service providers, who are looking to play in BPO, there is no fast track or silver bullet to this market, and focus is critical, IDC says.

Making a play as a BPO provider entails risks and takes time, resources, and patience, it says.