Shining a Light on Shadow IT: What You Need to Know

shadow it

Your organization is built on a foundation of interconnected technologies, from email operating and SaaS systems to video conferencing tools and data management systems. All this IT is pre-sanctioned and overseen by a diligent IT department – doing all they can to protect your organization and provide your team with the updates they need.

Unfortunately, no matter how “on top of it” your IT department is, there is a hidden threat within your organization: shadow IT.

What is Shadow IT?

Shadow IT is any technology your employees or teams use that is not expressly managed, overseen, or approved by the IT department. The vast majority of corporations – of all sizes – are riddled with shadow IT. Estimates suggest that 30-50% of all IT spending goes to shadow IT services, and roughly 80% of employees use some form of shadow IT. 

The most common shadow IT threats come from SaaS (service as a solution) companies, like: 

  • Time management and productivity apps
  • Cloud storage and data-sharing apps
  • Video conferencing software
  • Document editing software
  • Communication and messaging apps 

Why Do People Use Shadow IT?

Employees – and even whole teams – use shadow IT for many reasons. The most common reason is they wish to use the systems and services they are comfortable with. In many cases, employees will choose solutions they know can solve their problems better than the pre-approved options. In some cases, employees will opt for shadow IT solutions to avoid dealing with slow or out-of-touch IT departments. 

The Good Side of Shadow IT

Shadow IT comes with some undeniable benefits. It can make teams more agile and flexible so they can immediately adapt to required changes or take advantage of time-sensitive opportunities. It may also empower employees to use the best tools for the job since they’re the experts on the ground. 

Shadow IT may also provide a morale boost for employees. Employees can work with the systems they already know and like rather than use clunky systems that take longer, making them more efficient. Additionally, shadow IT systems may offer more opportunities for connection and collaboration within teams. 

The (Potentially) Bad Side of Shadow IT

Of course, with the good comes the bad (and the potentially dangerous). The biggest problem with shadow IT is the threat of data breaches, especially concerning proprietary information and sensitive data. Not only can this be time-consuming and damaging to your brand, but it can be costly. Other issues with shadow IT include the potential for lost or missing data (when it’s spread between multiple sources) or compliance issues with clients or governing bodies. 

What to Do About Shadow IT in Your Organization

The first step in dealing with shadow IT in your organization is to accept that it exists. Create a plan to educate your employees about the potential risks of shadow IT and develop a strategy to monitor IT usage within your organization.

Ideally, you already have a clear IT policy, but if not, then now is the time to develop one. Ensure your policy includes the approved services and systems that employees can download independently and a clear protocol to request additional systems. 

Next, review your IT processes. How long does it take for IT professionals to review and approve requests for new IT systems? Is there a backlog of IT requests? One of the reasons people turn to shadow IT is slow IT processes, so a speedy system can help eliminate the appeal of shadow IT. 

Finally, create a plan to deal with shadow IT if and when it becomes a threat. For example, if an employee is responsible for a breach, will they be financially responsible for the cost? Are there steps all employees must take to minimize the threat of shadow IT, like using a VPN or firewall? Make sure the plan is laid out in your company handbook. 

Protect Your Company From Shadow IT

Understanding and managing shadow IT is a critical aspect of securing your organization’s digital landscape. As you navigate these challenges, consider partnering with Domino Technologies—an ally in IT recruitment and expertise. Our team is dedicated to helping you stay ahead of the curve, providing tailored solutions to fortify your IT infrastructure. Contact Domino Technologies today to discover how our expertise can empower your organization.

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