Exit of 25,000 women impacts diversity ratios of IT majors in FY24

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There has been a net loss of about 25,000 women employees from TCS, Infosys, Wipro, HCL Tech and LTI Mindtree – the country’s top five IT firms – in FY24, which depressed the average diversity ratio in the January-March quarter this year to 34.26% from 34.32% in the corresponding quarter in 2023.

While an analysis of data by staffing firm Xpheno was highlighted in a report by The Economic Times, it also showed that the rise in diversity ratio of these IT services majors also crawled down to negligible levels after the pandemic in spite of an increase in absolute numbers. Data crunching by Xpheno revealed that the total number of women employed by these firms was about 374,000 in March 2020 (at the start of pandemic) but it ballooned to 540,000 in March 2023. But this absolute number of women employed by these companies dropped to 515,000 at the end of FY24.

However, despite the significant rise in the number of women employees between 2020 and 2024, a parallel rise in the number of male employees has prevented a rise in the diversity ratio. That explains why, in spite of a 38% rise – or 141,000 in absolute numbers – in women employees between 2020 and 2024, the diversity ratio improved by a miniscule 90 basis points.

“Such parallel growth in intake scale will continue to drive constant and flat gender ratios as we are witnessing now,” Shincy Morris, business head – direct hiring at Xpheno told the newspaper.

The pre-pandemic years between 2018 and 2020 registered a far better rise of 1.56 percentage point in diversity ratio in these companies. The rise in the number of women in the workforce after the pandemic is substantially a result of an overall increase in hiring of both male and female employees.

Poorer at upper levels

Data from diversity, equity, and inclusion (DEI) solutions company Avtar, shows a gloomy picture of women rising to leadership roles in the IT industry of India. The diversity ratio at the senior level is a mere 17% — less than half of 35% at the lower levels. “This lack of progression can be discouraging for ambitious women. Imagine dedicating yourself to a field, only to face constant hurdles to advancement and fair compensation. Feeling undervalued and passed over for promotions can be incredibly demotivating,” said Saundarya Rajesh, founder-president of Avtar group.

Women in IT suffer at another level too. The attrition rate for women in the tech sector stands at 26% — substantially higher than the 21% of the overall attrition of women across industry sectors, reveal data by Avtar.

“The pressure to excel in a demanding field while also managing personal commitments leads to burnout, which results in high attrition. Clearly, the lack of advancement opportunities is discouraging for new hires from diverse backgrounds,” said Saundarya.

With a view to improving the gender diversity ratios, over the last few years big IT companies launched programmes to attract and retain women in their payroll. Avtar’s data reveal that the diversity, equity and inclusion (DEI) intent has grown from 73% to 77%. However, there are a few surveys that also show the existence of deep-rooted bias and impediment in the road to advancement of career by women. A recent survey by ANSR, a consulting firm, show that women in tech firms face discrimination in multiple dimensions, including representation, decision making, recognition, and opportunities. “It is crucial that these programmes have the buy-ins of the CEOs. Hiring a bunch of people who are ‘different’ candidates does not guarantee inclusion,” Saundarya told the newspaper.

“Tackling the gender gap in leadership positions is crucial. This can be achieved by implementing policies that support women during pivotal life stages, such as offering flexible work arrangements, mentorship programs, and promoting return-to-work initiatives for those re-entering the workforce after a career hiatus,” said business head at Teamlease Digital Krishna Vij.