What Is Shadow IT and What Does It Mean for Your Business?

By July 12, 2022Uncategorized

Shadow IT is on the rise, and it is important to understand what it is and what you can do about it. Normally, it refers to software or hardware used for business that isn’t supported by its IT department. In other words, it hasn’t been approved, and the business may be unaware that employees are using it. The problem is that people have access to many tools that were only available to businesses in the past, such as cloud technology and other personal tech. It becomes an issue because the technology that employees are using may not employ the same security measures. 

Examples of Shadow IT

There are many technologies that classify as shadow IT, from tablets and smartphones to USB thumb drives. It also includes personal laptops and other hardware. Shadow IT includes applications, such as Google Docs, Skype, and messaging apps. When employees use any shadow IT for business, data is at risk. 

Why Do Employees Use Shadow IT?

The primary reason that employees use shadow IT is that it is accessible. They don’t do it for nefarious reasons; rather, they perceive that it makes it easier for them to do their jobs. Some employees report that they can work more efficiently when they work around their company’s security policies. They may discover an app, start using it, and share it with others. The rapid advance of technology has made it easier than ever before because employees have access to many different apps. 

In the past, software and devices were expensive, and it was unlikely that people would purchase them. Today, it is a matter of downloading an app, and they may use the app in their personal lives as well. 

The Risks of Employees Using Shadow IT

The main issue with shadow IT is that the company or organization can’t support it or make sure that it is secure. In fact, nearly a third of successful cyberattacks on a business occur through shadow IT resources. 

It is unreasonable to think that shadow IT is going away, so employers need to consider how they can educate employees and manage the use of this tech. They need strategies for monitoring and handling situations as they arise. 

When employees use file sharing and collaboration applications, data can be leaked. There is a risk when employees send their work to personal emails, as the IT department can’t monitor what happens next. It is also difficult for IT departments to monitor personal devices. Most individuals do not have the same security protections on their personal use devices. 

Are There Any Benefits to Shadow IT?

There are some benefits to shadow IT. First, employees can be more productive. They don’t have to wait for approvals, and they can often solve problems right away. Having to go through the IT department for every request can hurt productivity and morale. 

The key is for businesses to find a way to help their employees use applications and hardware that help boost productivity, but at the same time, they need to find a way to keep track of it. 

How to Reduce the Risks of Shadow IT

There are several ways to reduce the risks associated with shadow IT. First, the use of shadow IT comes from the employees’ desire to work more productively and efficiently. Businesses need to communicate with employees to find out what they need. Have meetings to discuss how you can make it easier for them to do what they need to do. 

Communication should be simple and straightforward. Businesses need to listen and make sure that they provide employees with what they need. 

Businesses can also educate and train employees. Many of them may not know what shadow IT is or that it is a problem. Make sure that they understand the risks to the company, and explain to them why the IT department has the protocols it has in place. When employees better understand the need for security and how shadow IT can harm the business, they are less likely to use it. 

You can also make sure that your IT department is researching and testing new technologies so that employees can have access to the most productive apps and devices. Create policies that are based on the user, and consider their needs in making decisions. It is important to be flexible and responsive to the needs of employees as new technologies become available. 

You can also use technology to monitor and discover shadow IT. Make sure that you monitor activities, including data or workload migrations and IT usage. By discovering the shadow IT sooner, you have a better chance of mitigating any risks. 

It is also important to evaluate shadow IT. It may not pose a serious threat, and there may be a way to integrate it into your business. The goal should be to provide employees with the tools they need to boost productivity, and if you are flexible and have an open mind, some shadow IT can benefit your business. 

Create Clear Shadow IT Policies

You should also create clear shadow IT policies. There are three categories for devices and apps, including those that are sanctioned by the business, those that are authorized, and those that are prohibited. This list should be reviewed and updated monthly, and employees should have access to the list. 

When you discover shadow IT in use, consider the history of it, what value it can provide, and whether or not you need to adopt a similar technology that provides it to employees. Look at the risks and costs of adopting it, and compare it to other tech. Once shadow IT is discovered, it needs to be placed into one of the categories; it should be sanctioned, approved, or prohibited. 

Final Words

As technology continues to advance rapidly, people have access to more hardware and software than ever before. That combined with many people working remotely has led to a rise in shadow IT. It is important for an organization to understand shadow IT and have a policy in place to monitor it. You should have clear policies so that your employees know what they are and aren’t allowed to use.