Women’s Participation In Tech Contract Work Nearly Doubles, But Gender Pay Gap Persists

India’s IT sector has seen a revolutionary shift in the entry of women in the workforce, particularly through contract jobs, in recent years. The percentage of women in tech contractual employment has nearly doubled, going from 9.51% in 2020 to 27.98% in 2024. The phenomenal rise is proof of getting more women into these roles and coincides with the period when the tech industry is expanding rapidly, with a growing demand for flexible working patterns.

Expanding Opportunities for Women in Tech Contractual Roles

The rise in the number of women in tech contractual roles is not limited to these jobs. In global capability centers (GCCs), or big tech hubs established by foreign firms in India, women have increased from 31.4% in 2020 to 38.3% in 2024. Such centers are known to have strong diversity and inclusion strategies in tech roles, which help attract and retain women.

Progress in IT Services and Non-Tech Sectors

In the broader IT services sector, women’s share of the workforce has grown from 7.8% in 2020 to 21.2% in 2024, though it saw a slight dip from 2023’s 26%. Factors like remote work options, improved digital tools, and company efforts to promote diversity and inclusion in tech roles have fueled this change. For instance, the COVID-19 pandemic prompted numerous businesses to offer flexible working schedules so that women could balance their work life and family responsibilities better.

Even in non-technology-based sectors like autos, banking, energy, health, and manufacturing, women’s participation in tech contractual employment has risen from 1.9% in 2020 to 14% in 2024. This is proof of how technology capabilities are being spread out beyond the traditional IT companies, creating new windows of opportunity for women in contractual employment that occasionally involve coding, data analysis, or cybersecurity.

The Persistent Challenge of the Gender Pay Gap

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The sole significant problem that still persists is the gender pay gap. Women technologists continue to earn less than men for performing the same work, and it widens at higher levels. In the GCCs, the remuneration gap in global capability centers remains around 16.1%, but widens to 16.4% at senior levels and 22.2% at high-priority domains like AI or cloud computing. In IT services, the average gender pay gap is 3.55%, increasing to 6.12% for mid and 8.34% for senior positions. Such issues are also present in non-tech industries, with gender pay gaps for tech and non-tech positions at 18% and 15% respectively.

Factors Contributing to the Gender Pay Gap

There are various reasons for this persistent gender pay gap. Women are more likely to be exposed to subconscious prejudice when being hired and promoted, limiting them from assuming better-paying positions. Some women also take career breaks to fulfill family responsibilities, such as childcare, slowing down their professional growth and impacting their salaries. In addition, there are fewer women in expert, high-paying professions such as machine learning or engineering, where men dominate. Women make up approximately 35% of tech experts globally, from 9% in the early 2000s, but the gender pay gap is not closing as fast.

Barriers to Leadership and Career Progression

Leadership roles reflect the same trend. Women in leadership roles across the technology sector have only slightly increased, from 11.43% in 2020 to 13.60% in 2024. For IT services, women hold only 6.91% of leadership roles in 2024, from the previous year. At the mid-management level, the figure has risen from 4.13% to 8.93% over the same period but remains low. Women occupy only 4% of entry-level technical jobs and 5.14% of mid-level jobs in non-technical fields. This “glass ceiling” exists since women do not have mentors, networking opportunities, or career paths in tech, and therefore they struggle to advance.

The Broader Impact of Gender Disparities

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The consequences of these disparities extend far beyond individual women. When women are not valued or are not included in leadership, companies lose out on varied inputs, which in fact can stifle innovation. Teams with more women perform better and develop innovative solutions. On an even broader scale, closing the gender pay gap could transform the Indian economy as women are currently contributing just about 18% to GDP when they are half of India’s population.

Solutions to Bridge the Gender Pay Gap and Enhance Inclusion

To address these issues, organizations must conduct pay equity audits from time to time to identify and correct discriminatory disparities in the pay gap in global capability centers as well as elsewhere. Creating a formal career path for women technologists, offering mentorship programs, and training leaders on bias can also prove useful. Recruitment on the basis of skills in new fields like AI and cybersecurity could provide women with access to higher-paying jobs. Flexible work schedules, such as part-time work or childcare leave, would help women continue to work. There are already some sectors, such as banking and life sciences, which are leaders in having stronger diversity and inclusion in technology roles, showing that the shift is achievable.

Conclusion: A Path Toward Equality in India’s Tech Industry

All in all, the tripling of women’s participation in tech contract work is a welcome sign of India’s tech industry development. It is evidence of serious intent towards diversity and inclusion in tech employment and the adoption of new styles of working. However, the continued pay disparity for women and lack of well-defined career paths for women in tech are a reminder that true equality remains a work in progress. By addressing these challenges head-on, the industry can construct a fairer, more innovative future for everyone.