What is Shadow IT?

Shadow IT occurs when employees use software, devices, or cloud applications without explicit approval from the IT department. Common examples include tools like Trello, Asana, or third-party calendar management apps.

The root cause often lies in unmet needs: employees turn to Shadow IT when official tools are slow, outdated, or inefficient for their tasks. Although this can boost productivity temporarily, it creates hidden risks that IT teams cannot monitor or control, such as security vulnerabilities and data loss.

Why Does Shadow IT Happen?

Lack of Suitable Tools
Employees adopt external tools when IT-approved solutions are slow, outdated, or not user-friendly.

Productivity Pressures
Teams may use unauthorized tools to meet deadlines or improve workflows quickly.

Cloud Accessibility
Cloud-based tools are easy to adopt without needing IT approval, increasing the prevalence of Shadow IT.

Lack of Knowledge of Available Tools
Employees may be unaware of the approved tools within their organization and turn to external alternatives out of convenience or necessity.

Risks and Challenges of Shadow IT

• Security Vulnerabilities: Unauthorized tools may lack robust security features, increasing the risk of data breaches or malware attacks.

• Data Loss: Sensitive company data stored in unauthorized applications may not be adequately protected, leading to accidental or intentional loss.

• Compliance Issues: Shadow IT can violate data protection regulations such as SOC2 or ISO127001, exposing organizations to legal penalties.

• Lack of Visibility: IT teams lose control over who accesses critical data and where it is stored, leading to operational inefficiencies and blind spots.

• Increased Costs: Unmanaged tools can lead to redundant spending, duplicated licenses, and higher SaaS costs.

How to Identify and Manage Shadow IT

1. Implement SaaS Management Tools: Adopt tools that provide visibility into SaaS usage across the organization. Platforms like ShiftControl centralize SaaS management, helping IT teams monitor app adoption and user activity.

2. Improve IT Policies and Communication: Educate employees on the risks of Shadow IT and provide clear policies for requesting new tools. Collaborate with departments to understand their needs and address pain points.

3. Enable Approved, User-Friendly Solutions: Provide employees with tools that meet their productivity needs. Invest in modern, user-friendly SaaS solutions to reduce the temptation to adopt unauthorized alternatives.

4. Enforce Access Controls: Use access control tools like Identity and Access Management (IAM) systems to monitor and manage user permissions. This reduces unauthorized access to critical resources.

5. Conduct Regular Audits: Use audits to identify unauthorized applications and analyze their usage. Understanding where Shadow IT exists helps set the stage for control.

6. Create a Balance Between Innovation and Control: Foster a culture where employees can suggest tools that improve workflows but align with security and compliance requirements.

How ShiftControl Brings Clarity and Control to Shadow IT

ShiftControl helps organizations identify and manage Shadow IT by providing centralized visibility into all applications and tools being used within the organization.

Key features include:

• SaaS Discovery: Automatically detect unauthorized tools and applications being used.

• Usage Monitoring: Track app usage to analyze its relevance, security, and cost.

• Access Governance: Centralize access management to ensure only approved users can access applications.

• Cost Optimization: Eliminate redundant tools and optimize SaaS spending by streamlining subscriptions and removing duplicates.

With ShiftControl, IT teams can regain control over their digital environments, ensuring secure, compliant, and efficient operations while enabling employees to stay productive.