Women remain underrepresented in information technology (IT) and STEM fields, reflecting persistent barriers related to societal norms, organizational structures, and individual influences. A key factor contributing to this disparity is the gender confidence gap, where women rate their technical abilities lower than men despite comparable performance. This study examines whether gender team composition in an Information Systems Development (ISD) course can influence students’ self-assessments of technical skills, interest, and career aspirations in IT. Using a randomized design, 147 undergraduate students were assigned to teams with varying gender compositions—female-majority, male-majority, gender parity, and mixed-minority groups. Pre- and post-course surveys measured perceptions of technical abilities, prior knowledge, and career intentions. Results confirm the gender confidence gap, with women consistently underestimating their abilities compared to men, despite no differences in exam performance. Notably, women in female-majority teams reported significant improvements in their perceived technical abilities, while men in male-majority teams experienced a decline in self-assessment. However, team composition did not affect students’ interest in further education or careers in IT. These findings highlight the importance of team dynamics in shaping confidence and suggest that same-gender teams may help mitigate stereotype threats, boosting women’s confidence in technical domains. The study underscores the need for course strategies that address gender-based self-perception disparities to support diversity and inclusion in IT education and careers.