Shadow IT: Why it Happens and How to Address it with Your Team

In today's fast paced business environment, employees are constantly looking for ways to improve their productivity, collaborate more efficiently, and solve problems on their own. While this can be a great trait for an employee to have, it can also lead to a growing and largely invisible cybersecurity risk for businesses: Shadow IT.

Shadow IT refers to the use of unauthorized hardware, software, or cloud services within an organization without approval from an IT department.

If left unmanaged, Shadow IT has the potential to expose your business to security threats, compliance issues, and operational difficulties.

What is Shadow IT?

As previously mentioned, any usage of unauthorized technology or software falls under the category of shadow IT. Some examples include:

• Employees using personal file sharing tools such as Google Drive or Dropbox

• Teams signing up for SaaS platforms without IT review

• Unauthorized messaging or collaboration apps such as Messenger or Slack

• Personal devices accessing company data

Why Shadow IT Happens:

Before you can address shadow IT, it's important to understand why your employees might turn to these unauthorized tools.

1. Employees Want to Work Faster

Shadow IT often emerges as a quick fix when official tools feel slow, outdated, or restrictive. Employees will search for alternatives to help them get their job finished more efficiently, especially if they have a packed schedule.

2. Lack of Awareness

Many employees simply don't understand the risks associated with shadow IT. They don't realize that utilizing unauthorized technology opens the door to several security vulnerabilities.

3. Gaps in IT Support

If employees feel as though they aren't getting IT support quickly enough, they might just turn to new applications altogether. Having a strong IT team that is able to provide prompt support can make all the difference.

4. Rise in Popularity of New SaaS Tools

SaaS (software as a service) tools are being created left and right, each of them easy to access and sign up for. Authorization from IT isn't needed to utilize these applications making it difficult to manage usage.

The Risks of Shadow IT

While shadow IT can improve short term productivity, long-term consequences can be costly.

Security Vulnerabilities:

Unvetted applications can lack proper security controls, making them an ideal target for cyberattacks.

Data Loss and Compliance Issues:

Sensitive data may be stored in unsecure or non-compliant platforms, increasing legal and regulatory risks.

Lack of Visibility:

If IT doesn't know a tool exists, they can't monitor or update it, leaving it extremely vulnerable.

Inefficiencies and Redundancy:

Multiple teams using different tools for the same purpose can create confusion, duplication of work, and unnecessary costs.

How to Address Shadow IT with Your Team

The goal with shadow IT is to be able to manage it strategically whilst empowering your employees to do their best work.

1. Start with Transparency, Not Punishment

Create an environment where employees feel comfortable disclosing what tools they're using. If shadow IT is met with punishment, it may just go further underground as employees might do more to hide it.

2. Understand the "Why"

When employees adopt new tools, they don't do it with the intention of harming your IT environment, they do it in order to increase their productivity, believing something is missing in order for them to be able to do so. It's important to communicate with your team to identify these gaps so they can be properly addressed. Is IT support just too slow for them? Are the authorized applications outdated? Are they not user friendly?

3. Build an Approved Tools List

It's possible your team may not even realize that they're only permitted to use authorized applications. Create a list of approved, secure tools that your employees can confidently use. This list should be easy to access and updated regularly to avoid confusion.

4. Streamline the Approval Process

If getting approval for new tools takes weeks, employees won't wait. Implement a fast and simple review process so it's easier to get your team on a new application.

5. Educate Your Team

Regular training on cybersecurity and data protection helps employees understand the risks associated with shadow IT and make better decisions.

6. Use Monitoring and Discovery Tools

Modern IT solutions can help identify unauthorized applications and devices without interrupting workflows. This gives you visibility without micromanaging your team.

7. Partner with a Reliable IT Provider

IT support should enable employees to work faster, it shouldn't be a roadblock for them. IT should be collaborative across all departments and provide reliable and prompt service consistently.

Turning Shadow IT into an Opportunity

While it is undoubtedly frustrating and creates serious security concerns, shadow IT might yield some positives as well. It can be a valuable insight, hinting to companies that something isn't working for employees. Whether that be where current tools are falling short, how IT support is slowing things down, or your business evolving beyond its current IT infrastructure. Identifying what is ineffective for your team is the first step to making great changes.

To Conclude:

Shadow IT is unfortunately something that is to be expected in modern workplaces, and managing it is extremely important.

With clear communication, better tools, and a proactive strategy, you can reduce risk, improve efficiency, and empower your team to work smarter.

If you'd like to learn how a reliable IT partner can make all the difference when it comes to limiting risks associated with shadow IT and reducing shadow IT altogether, book a free discovery call with us today.