It's no secret that technology has completely transformed the way we do business. From cloud computing to mobile devices, there are countless tools and resources available to help companies operate more efficiently and effectively.

However, these benefits also come with risks, particularly when it comes to unapproved technology being used at your company. This is known as "shadow IT," and it can pose significant threats to the security and stability of a business.

In this guide, we will discuss what shadow IT is, its potential risks, and, most importantly, how to protect your business. By being proactive and taking the necessary precautions, you can prevent shadow IT from causing harm to your company.

What is Shadow IT?

Shadow IT refers to any technology or software that is used within a company without the approval or knowledge of the IT department. This can include everything from personal smartphones and laptops to cloud services and productivity apps.

Essentially, anything that is not officially sanctioned or supported by the company's IT team falls under the umbrella of shadow IT. And, with the rise of remote work and the increasing accessibility of technology, it's only becoming more prevalent in the workplace. In fact, a study by Gartner found that a rapidly increasing number of employees are reported using unauthorized tech for work purposes. 

Why Does Shadow IT Happen? 

So why do employees turn to shadow IT in the first place? It's not usually out of malicious intent; instead, it's often due to:    

• Convenience: Employees may find unapproved tools easier or faster to use than official ones, especially if they feel the approved solutions are outdated or cumbersome.

• Productivity: Some employees believe that using their preferred apps or devices will help them work more efficiently or collaborate more effectively. 

• Lack of Awareness: In some cases, employees don't realize the risks associated with using unauthorized technology or may not even be aware of company policies regarding approved tools.

• Gaps in IT Support: When employees feel their needs aren't being met by the IT department, they may take matters into their own hands to find solutions.

The Risks of Shadow IT

While it may seem harmless on the surface, shadow IT can bring many risks and challenges to a business. These include:

1. Security Vulnerabilities

Using unapproved tools can expose a company's sensitive data to security breaches and cyberattacks. Shadow IT often lacks the necessary security protocols and updates, leaving systems vulnerable to hackers.

2. Reduced Visibility and Control

With people using different tools and devices, it becomes challenging for the IT team to track and manage all technology in use. This lack of control can make enforcing compliance with regulations or company policies difficult.

3. Data Silos and Loss      

When employees rely on personal tools and devices, essential data may remain isolated, inaccessible to the broader team, or excluded from company backups. This creates data silos—separate pools of information that hinder collaboration and increase the risk of losing critical data.

4. Increased IT Costs

Tracking and addressing unauthorized technology retroactively can strain IT resources and increase costs. Fixing issues caused by shadow IT often takes time and effort that could have been avoided with proper oversight.

How to Protect Your Business from Shadow IT

Addressing shadow IT requires a proactive approach. Here's how you can safeguard your business while empowering employees with the tools they need:

Foster Open Communication

Create a culture where employees feel comfortable discussing their technology needs. By understanding their challenges, companies can recommend suitable tools and eliminate the need for shadow IT.

Develop Clear Policies

Establish and communicate clear guidelines on what technology and tools are approved for use. Include explanations of why these policies are essential to the company's security and compliance.

Provide User-Friendly Tools

Ensure that approved tools and systems are intuitive, efficient, and capable of meeting employee needs. Conduct regular surveys or feedback sessions to assess satisfaction with the current tech stack.

Educate Your Team

Train employees on the risks of shadow IT and the importance of using approved tools. Provide practical examples of how shadow IT can lead to security breaches or compliance issues.

Use Monitoring Software

Deploy monitoring tools to track the use of unapproved apps and devices. While this shouldn't replace trust, it can provide insights into potential risks and help you address them quickly.

Take Control of Shadow IT

Shadow IT doesn't have to be a looming threat to your business. By understanding why it happens and taking proactive measures to address it, you can mitigate risks while fostering a secure, productive work environment.

Remember, the goal isn't to stifle innovation but to strike a balance between empowering employees and maintaining control over your company's technology landscape. So, take steps today to protect your business from the hidden risks of shadow IT.