India a Global Economic Super Power

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New parts of the world that were not long ago considered undeveloped, backwater countries, are now taking center stage in the global economy. Much has been publicized about the ascendance of China's economy, as it has become a major venue for the manufacturing of products sought after by worldwide consumers eager for cheaper goods. However, China's Asian neighbor, India, also has a vigorously growing economy. India's economy is partly being fueled by companies around the world seeking to reduce their costs by outsourcing some of their operations there.
A March 9, 2005 article in the International Herald Tribune reported that within 30 years, India is projected to have the world's third largest economy
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Business Process Outsourcing, or BPO, involves more routine processing of data. Ravi Aron, Professor of operations and information management at the University of Pennsylvania's Wharton School, said examples of BPO involve more routine functions where there is a predefined way of doing tasks or even reaching conclusions, as in data entry, accounts maintenance and customer service activities such as those performed at call centers. BPOs typically provide such services as setting up bank accounts, selling an insurance policy and voice and e-mail-based computer support. Aggarwal said that a higher Level of service than BPO is called Knowledge Process Outsourcing or KPO. KPO involves high-end processes such as investment research and Legal and insurance claims processing. In a March 21, 2005 article in the Indiatimes News Network, Pavan Bagai, Vice President, strategic businesses, EXL said, "Imagine unsorted data going through a black box and coming out as useful information. In KPOs the black box is your mind. There is no predefined process to reach a conclusion."
In either BPO or KPO, India often offers a huge cost savings potential over those functions being performed by American workers in the U.S. Aron said that in credit card-related functions, the cost of an American worker, including benefits and overhead, ranges
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