The global economic slowdown is taking its toll on the IT sector in the country and companies are looking at options to cut down costs.

As a result of the slowdown, the IT employees from outside Hyderabad are now being moved from luxury hotels to service apartments.

Louise, like most other IT expats living in serviced apartments, feels that her company is justified in finding a cheaper living option for her stay.

“Certainly it is the most cost effective way and you feel like your at home. Moreover, you don’t have to worry about maintenance,” said Louise.

“The hotels rooms here are not available easily and now with bigger companies cutting costs, a lot of people come here looking for a reasonable place,” said Ranju Sharma, Director, Concord Comfort.

Since most of the serviced apartments cater to the corporate crowd and expats, many of the Hyderabad companies rent these apartments on a long-term basis specifically for their employees.

Not just long tours, even 8-10 night visits qualify for service apartments and with visitors having no problems as well as cost savings, it is a win-win option for IT companies.

“Cost is a criteria and you basically get your value for money. Hotels here cost between Rs 10,000–Rs 15,000 and that is just too expensive," said Pradeep Chowdhary, MD, Acalmar.

Even at the top, the employees of big companies prefer the homely comfort and space of serviced apartments which look like they will be giving stiff competition to hotels for some time to come.