Shadow IT is the use of unauthorized applications, devices, or software within an organization’s IT infrastructure, typically by employees or departments without the knowledge or approval of the IT department. This often happens when employees turn to unsanctioned tools to meet their work needs quickly or when they perceive official tools as inefficient or cumbersome. Examples include employees using personal cloud storage accounts, messaging apps, or file-sharing platforms to store and share work-related data outside of corporate channels.
Why Shadow IT Is a Concern for Businesses
- Security Risks: The biggest threat posed by Shadow IT is security vulnerabilities. Since these applications are not part of the company's formal IT infrastructure, they might not meet the company’s security standards or be regularly updated, exposing sensitive data to breaches or cyberattacks.
- Compliance Issues: Many industries are subject to regulations (e.g., GDPR, HIPAA, PCI DSS) that require strict control over data storage, access, and sharing. Shadow IT can create compliance risks as it is often outside the scope of internal data governance and monitoring processes.
- Data Loss or Theft: Data stored in unauthorized apps or devices can be lost or stolen more easily because these systems often lack the necessary backups, encryption, or access controls that official company systems provide.
- Operational Challenges: Shadow IT can complicate data management, create inconsistencies, and lead to duplication of efforts across departments. It also makes it difficult to get a clear view of all the tools employees are using, complicating IT support and resource planning.
How to Manage Shadow IT
To control and reduce the risks associated with Shadow IT, businesses should implement a clear policy outlining acceptable technology use and data governance. Regular monitoring of network traffic, employee education on security protocols, and the deployment of cloud access security brokers (CASBs) can help identify and manage shadow IT. Additionally, offering approved alternatives that meet employee needs can reduce the temptation to turn to unsanctioned tools.