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GAPP. Kurt De Buck Bregt Bourgeus. Agenda. WHAT IS GAPP GAPP IN BELGIUM PC PRIVE – THE LAW PC PRIVE – YOUR OPPORTUNITY. GAPP WHAT IS IT?. Government Assisted PC Programs. Build efficient eGov infra-structure. Improve ICT skills citizens. Digital Inclusion. Improve Education. Gov.
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GAPP Kurt De Buck Bregt Bourgeus
Agenda • WHAT IS GAPP • GAPP IN BELGIUM • PC PRIVE – THE LAW • PC PRIVE – YOUR OPPORTUNITY
Government Assisted PC Programs Build efficient eGov infra-structure Improve ICT skills citizens Digital Inclusion Improve Education Gov. priorities Communication Campaign Industry consortium Intel expertise Empowered centralised Government body Enabling greater PC and solutions penetration thru sustainable usage models supported by government incentives and flexible PC acquisition schemes
Government Assisted PC Programs • Joint Governement & Industry cooperation • Telco: internet • Local Integrator: PC • Bank: low interest financing • Repay through Telephone bill … • Government: Sponsors – Public + visible Campaign • Various Options of Audience • Employees = EPP – Employee Purchase Program • Education = SPP – Student Purchase Program • xPP = different demography segments – e.g. senior (SePP), low income etc. • SME link to eGovt = Mature + Emerging mkts
LOW PC HOUSEHOLD PENETRATION (52 TO 54%) = BELOW EUROPEAN AVERAGE
ONE GAPP PROGRAM LIVE IN BELGIUM PC PRIVE EMPLOYEE PURCHASE PROGRAM
PC PRIVE • Cost savings • Education • Career • Convenience • Gov’t efficiencies • Country competitiveness • Build eGov Infrastructure • Computer Literacy • Shrink Digital Divide Government Employees Industry Employers • Up-skill Workforce • Employee Productivity • Add’l. Employee Benefit • Job Flexibility • Operational savings • Sell Up • New route to Market • TAM Expansion • Pull for Other Equip/Svcs Industry Industry= YOU
FOR ALL EMPLOYEES SAME OFFER OPTION 1 • EMPLOYEE BECOMES OWNER OF PC & PERIPHERALS • Employee does the purchase within the guidelines of the employer plan + pays VAT + pre finances the purchase + brings in the invoice • Offer can include printer, scanner, PDA (as peripheral) but also broadband & software • Reimbursement by the employer limited to max 60% of the purchase price (excluding VAT) and with maximum of 1250 €
EXAMPLE EMPLOYEE Pays 40% of the 1600 € + VAT COST = 976 € EMPLOYER Reimburses 60% of 1600 € = 960 € Tax recup (33,99%) = 326 € COST = 634 € 1600 € + 336 € (VAT) = 1936 €
FOR DIFFERENT EMPLOYEES, DIFFERENT OFFER POSSIBLE OPTION 2 • EMPLOYER OWNS THE PC AND PERIPHERALS • Employer buys the material and offers it to the employee for home usage • A. This home usage is considered a taxable benefit, fixed at 180 € for the PC & 60 € for internet per year • B. The employee does not have to report the benefits to tax authorities when he pays these amounts to the employer directly (see example next slide)
EXAMPLE EMPLOYEE Pays 240 € a year (PC & internet) to employer PER MONTH = 20 EUR EMPLOYER Buys PC (1936 €) & 3 years BB (1260 €) = 3196 € OR 1065 € a year Minus 240 € (employee contribution) = 825 € Tax recup = 280 € Final COST = 545 € PER MONTH/EMPLOYEE = 45 € 1600 € + 336 € (VAT) = 1936 €
WHICH PERCENTAGE OF COMPANIES IS AWARE? • WHO DECIDES? • WHICH PERCENTAGE HAS ROLLED OUT? • ARE EMPLOYEES HAPPY? • …. 206 interviews
1 OUT OF 4 COMPANIES IS NOT AWARE ABOUT EPP • MAIN SOURCE OF INFORMATION IS PRESS • BIG POTENTIAL FOR RESELLERS TO PC PRIVE DISCUSS FTF NEED TO REMOVE ROADBLOCKS BUDGET NEEDS & FOCUS ON MUTUAL BENEFITS
18% WITH EPP EXPERIENCE • Top 2 reasons for roll out • increase IT skills employees • incentive or extra bonus • 1 out of 2 doesn’t know which option • 85 % initiated by HR department • Top 1 obstacle = THE BUDGET • Top 3 elements EPP package • 81% PC, 31% printer, NB 11% 94% OF THE EMPLOYEES IS SATISFIED ABOUT PC PRIVE
82% WITHOUT EPP EXPERIENCE • Up to 70% of EPP projects evaluations initiated by HR, • 19% by IT • 17% by CEO • 79% evaluates internally, only 13% with external partner MAJORITY OF COMPANIES IS NOT EVALUATING PC PRIVE
FUTURE PC PRIVE PLANS • 74 % has NO plans • Lack of budget (17%) • Lack of management commitment (10%) • 14% has plans MAJORITY OF COMPANIES HAS NO PLANS …………… YET
YOUR OPPORTUNITY • Those who have tried it are enthusiastic. It works! • 25% are not familiar. Go sell it! • The obstacles can be addressed • Projects got stuck in complex decision making – sell a total/simple solution! • People are sitting with wrong assumptions • PC Privé is a social investment and builds loyalty – do not use it in wage negotiations! • Blue collar workers are enthusiastic about PC Privé!