Technology has fundamentally reshaped how businesses operate. From cloud computing to mobile devices, companies now have a wide range of tools and resources to improve efficiency and productivity.
However, these benefits also come with risks—particularly when employees use unauthorised technology within the workplace. This is known as shadow IT, and it can pose significant threats to a business’s security and stability.
This guide examines what shadow IT is, the risks it presents and, most importantly, how to protect your business. By being proactive and implementing the right precautions, you can prevent shadow IT from jeopardising your operations.
What is shadow IT?
Shadow IT refers to any technology or software used within a company without the approval or awareness of the IT department. This can include personal smartphones and laptops, as well as cloud-based services and productivity applications.
In essence, any technology that is not officially sanctioned or supported by the company’s IT team falls under the umbrella of shadow IT. With the rise of remote work and the increasing accessibility of technology, shadow IT is becoming more prevalent. According to a Gartner study, 41 per cent of employees admitted to using unauthorised technology for work-related tasks.
Why does shadow IT occur?
Employees do not typically adopt shadow IT with malicious intent. Instead, it often arises for the following reasons:
- Convenience
Employees may find unapproved tools quicker or easier to use than those provided by the company, particularly if the latter feel outdated or cumbersome. - Productivity
Some employees believe their preferred applications or devices allow them to work more efficiently or collaborate more effectively. - Lack of awareness
Many employees may not fully understand the risks of using unauthorised technology or may be unaware of company policies regarding approved tools. - Gaps in IT support
If employees feel their needs are not being met by the IT team, they may take matters into their own hands by seeking alternative solutions.
The risks of shadow IT
Although shadow IT may initially seem harmless, it introduces significant risks for businesses, including:
Security vulnerabilities
Unapproved tools often lack the necessary security features, leaving company data at risk of breaches and cyberattacks. Without IT oversight, these applications may not receive regular updates or adhere to appropriate security protocols.
Reduced visibility and control
When employees rely on different tools and devices, IT teams struggle to monitor and manage the technology in use. This lack of visibility complicates compliance with company policies and industry regulations.
Data silos and loss
When employees store work-related data on personal apps or devices, important information may not be shared with colleagues or backed up on company systems. This creates data silos, hindering collaboration and increasing the risk of data loss.
Increased IT costs
Addressing unauthorised technology after the fact places additional strain on IT resources. Managing security breaches, resolving compatibility issues or migrating data from unapproved tools can result in unexpected expenses.
How to protect your business from shadow IT
Preventing shadow IT requires a proactive approach. Here are key steps to safeguard your business while equipping employees with the tools they need:
Foster open communication
Encourage a workplace culture where employees feel comfortable discussing their technology needs. Understanding these challenges allows IT teams to recommend suitable tools and reduces the likelihood of shadow IT.
Develop clear policies
Create and communicate clear guidelines outlining which tools and technologies are approved. Educate employees on why these policies are essential for maintaining security, compliance and efficiency.
Provide user-friendly tools
Ensure that approved applications and systems are effective and easy to use. Regularly solicit feedback through surveys or discussions to assess employee satisfaction with the company’s technology stack.
Educate your team
Offer training sessions to help employees understand the risks of shadow IT and the importance of using approved tools. Real-world examples of security breaches and compliance violations can make the message more impactful.
Use monitoring software
Implement tools that detect the use of unauthorised applications and devices. While this should not replace trust, monitoring can identify potential risks and help IT teams address issues proactively.
Take control of shadow IT
Shadow IT does not have to be a persistent threat to your business. By understanding its causes and taking proactive steps, you can minimise risks while fostering a secure and efficient workplace.
The goal is not to stifle innovation but to strike a balance—empowering employees while maintaining oversight of your company’s technology environment. Acting now will help protect your business from the hidden risks of shadow IT.
