Shadow IT: What it is and why your business should be concerned

If you have ever used your personal Zoom account instead of the company’s to join a client meeting, then you’ve used shadow IT. Shadow IT is the use of any software, hardware, or IT resource without authorization or oversight from the company’s IT department.

Why do employees use shadow IT?

Here are some common reasons employees may turn to shadow IT:

• Convenience and speed – Employees may find other tools easier and faster to use than the official options offered by your IT department.
• Lack of awareness – They might not be familiar with all the IT-approved tools available or how to use them effectively.
• Frustration with IT approval processes – The official process for getting new IT tools approved can be slow and cumbersome.
• BYOD policies – Bring your own device (BYOD) policies allow the use of personal devices for work, but the IT team often lacks full visibility or control over what software employees use on these devices.

The risks of shadow IT

While shadow IT might seem like a harmless shortcut, it can expose your company to risks, such as:

Loss of IT visibility and control

When IT teams are unaware of the devices and applications employees are using, they can’t implement necessary security measures, leaving the organization exposed to potential threats. Vulnerabilities in shadow IT applications may go unpatched, making it easier for cybercriminals to exploit these weaknesses.

Data security concerns

Employees who use shadow IT may store client information on personal cloud accounts that lack proper backups and security measures. This can increase the risk of data loss or breaches, jeopardizing data security and integrity.

Business inefficiencies

Shadow IT can disrupt productivity, especially when unauthorized applications do not integrate well with official systems. The incompatibility of the tools employees use and the systems the organization relies on creates friction that slows down workflows. 

For example, updates or patches to official systems may unintentionally disrupt the functionality of unauthorized apps. As a result, employees may waste time troubleshooting issues or finding workarounds to keep their processes running. In other cases, employees may unknowingly work on different versions of a project or use incompatible formats, leading to wasted time trying to resolve discrepancies.

Compliance challenges

For businesses in regulated industries, shadow IT can lead to compliance issues, such as HIPAA violations for healthcare organizations. Unauthorized tools often lack essential security measures such as encryption and access controls, putting businesses at risk of noncompliance, which can lead to costly fines or legal consequences.

Strategies for managing shadow IT

Rather than simply banning shadow IT, many companies are finding that a balanced approach is more effective. Consider these strategies:

• Educate employees – Help employees understand the risks of shadow IT and the benefits of using approved tools. Regular training can reinforce how these tools protect both the business and employees.
• Implement clear policies – Clearly communicate which tools can be used and which cannot to help employees make safer choices.
• Provide accessible tools – Work closely with the different departments of your company to understand their needs and ensure they have the right tools available. When employees feel that company-approved tools meet their needs, they’re less likely to seek alternatives. 
• Encourage open communication – Create an environment where employees feel comfortable discussing their tool preferences with the IT department. If there’s a need for a specific tool, IT can evaluate and, if they deem it safe, approve it.
• Simplify IT approval processes – Make the process for requesting new software faster and more accessible. A streamlined approach reduces the temptation to bypass IT protocols.
• Conduct regular monitoring – Use monitoring tools to identify unauthorized devices or apps on your network, allowing you to detect and address shadow IT risks early.

Let the IT experts at SpectrumWise handle shadow IT for your business. With our support, you can manage shadow IT risks effectively while equipping your team with secure tools. Schedule a consultation with us today to get started.