Shadow IT

What is Shadow IT?

Shadow IT refers to the use of technology, tools, or systems within a company that isn’t approved by the official IT department. Imagine employees downloading apps, using their personal devices, or signing up for cloud services like Google Drive or Dropbox to complete their work, all without the IT team’s knowledge. 

Common examples of Shadow IT include employees using messaging apps like WhatsApp for work conversations or signing up for file-sharing services without seeking permission from the IT department. 
 

Why Do People Use Shadow IT?  

1. Convenience

One of the primary reasons employees turn to Shadow IT tools is convenience. These tools are often faster and easier to use than the company-approved software. Employees seek out Shadow IT because it helps them complete tasks efficiently without waiting for slow or outdated systems.  

2. Lack of Suitable Tools

Employees also adopt Shadow IT when the company-provided tools don’t meet their needs. Often, official software needs more features or flexibility for employees to get their work done and push them to find external solutions.  

3. Easy Access

Another major reason for Shadow IT adoption is the easy access to these tools. Many are freely available online, requiring only a quick sign-up to start using them, which makes them incredibly appealing for employees looking for immediate solutions. 

Benefits VS Risks of Shadow IT 

Shadow IT Pitfalls Across Various Sectors 

1. Dropbox in Financial Services  

A financial team used Dropbox to disseminate long and detailed financial documents that were meant for stakeholders. While Dropbox was more efficient and faster, this was a service that was not approved by the IT department of the company. The unauthorized use of Dropbox for that purpose ended in causing a data breach when financial documents were circulated without proper security measures – encryption. The breach resulted in heavy fines for violating industry data protection regulations. 

2. Slack in Healthcare  

In a hospital setting, some doctors started using Slack to facilitate faster communication between departments. It wasn’t approved by the hospital’s IT team, which meant it didn’t meet the strict healthcare data privacy regulations. When sensitive patient information was accidentally shared through the platform, the hospital faced legal consequences for violating HIPAA regulations. The issue highlighted the need for secure, compliant tools in sensitive industries like healthcare.  

3. Trello in Manufacturing  

In one of the manufacturing companies, a project team preferred working with Trello rather than the official project management software because it was helpful in managing workflows. Therefore, Trello was not adopted as a module of the company’s administrative IT systems, which meant that the company had no governance over the location of the data. When the services of an external provider became unresponsive the team lost crucial production data, and this led to the postponement and extra costs in the production schedule. 

Top 4 tools to help detect and manage Shadow IT  

1. Microsoft Cloud App Security (MCAS)  

• Primary Role: This tool oversees and protects the usage of cloud applications for your organization and works to identify any rogue cloud apps and remain compliant. 

• Key Benefit: It integrates seamlessly with Microsoft environments and provides real-time monitoring of Shadow IT activities.  

2. Cisco Umbrella  

• Primary Role: Cisco Umbrella is a model of cloud security that helps recognize and prevent unsanctioned applications and services and monitor Shadow IT usage.  

• Key Benefit: It protects users whether they are on or off the corporate network, ensuring continuous monitoring.  

3. Netskope  

• Primary Role: Netskope provides visibility into cloud app usage and monitors for risky behaviors. It helps manage Shadow IT by analyzing app usage and identifying compliance risks.  

• Key Benefit: It offers advanced data protection, enabling organizations to secure sensitive data across various cloud applications.  

4. Zscaler  

• Primary Role: Zscaler helps organizations detect and control Shadow IT by providing visibility into unsanctioned applications and blocking risky usage.  

• Key Benefit: It offers a scalable solution that protects organizations by securely connecting users to applications, regardless of location.  

Conclusion  

Shadow IT occurs when employees use unapproved tools and technology, often because they want to get things done more quickly or efficiently. While this can make life easier in the short term, it comes with serious risks, like data breaches and compliance issues, that can hurt the entire company. 

Companies need to find a balance between allowing employees the flexibility to work efficiently and keeping data secure. This balance can be achieved by fostering open communication, providing better tools that meet employee needs, and educating teams about the risks of using unapproved software. Therefore, employees and IT work together, creating a safer, more productive environment for everyone.