What is Shadow IT?
What Is Shadow IT? Understanding Its Impact on Organisations
Shadow IT refers to the use of technology solutions, such as applications, devices, or services, within an organisation without the explicit approval or oversight of the IT department. Examples include employees using personal devices for work, downloading unapproved software, or subscribing to cloud services without informing IT teams.
While Shadow IT may improve convenience or efficiency for employees in the short term, it often bypasses the security protocols, governance, and compliance standards put in place by the organisation.
Why Does Shadow IT Happen?
There are several reasons why Shadow IT becomes prevalent in organisations:
1. Ease of Access
With the rise of cloud-based services, it has become easy for employees to subscribe to software tools or use personal devices without going through formal approval processes.
2. Lack of Awareness
Employees may not realise that using unsanctioned tools could pose a risk to the organisation. They might simply be trying to find faster or more efficient ways to accomplish tasks.
3. Slow IT Processes
When the IT department takes too long to approve new tools or solutions, employees may take matters into their own hands by seeking alternatives.
4. Specialised Needs
Some departments, such as marketing or sales, might require specific tools that are not part of the organisation’s standard IT offerings.
Examples of Shadow IT
Shadow IT can take many forms, including:
- Cloud Services: Employees using unauthorised platforms like Dropbox, Google Drive, or Trello to store and share files.
- Messaging Apps: Teams using tools like WhatsApp or Slack without IT approval for internal communication.
- Personal Devices: Staff accessing corporate data from personal laptops, tablets, or smartphones without proper security measures.
- Unapproved Software: Downloading and installing productivity apps or free software that have not been vetted by IT.
Risks of Shadow IT
While Shadow IT may boost individual productivity, it comes with significant risks that can jeopardise the organisation’s security, compliance, and efficiency.
1. Data Security Risks
Unauthorised tools often lack robust security measures. Sensitive data stored or shared via these tools could be vulnerable to breaches or unauthorised access.
2. Compliance Violations
Shadow IT can lead to non-compliance with industry regulations, such as GDPR, as unauthorised tools may not adhere to required standards.
3. Data Loss
When employees use personal tools or devices, the organisation loses control over data storage and backup, increasing the risk of permanent data loss.
4. Increased IT Costs
Shadow IT creates inefficiencies as IT teams may need to identify, integrate, or replace unauthorised solutions. It also adds complexity to managing the organisation’s overall IT ecosystem.
5. Disruption of IT Strategy
Shadow IT undermines centralised IT management, making it difficult for organisations to maintain a cohesive technology strategy.
How to Manage Shadow IT
Managing Shadow IT doesn’t mean completely eliminating it. Instead, organisations should aim to strike a balance between employee autonomy and organisational security. Here are some strategies to effectively manage Shadow IT:
1. Foster Open Communication
Encourage employees to communicate their technology needs and challenges with the IT department. This ensures that appropriate solutions can be implemented.
2. Streamline Approval Processes
Simplify and expedite the process of approving new tools or software. When employees see that the IT team is responsive, they are less likely to seek unauthorised alternatives.
3. Implement Monitoring Tools
Use IT monitoring solutions to detect unauthorised software or services being used within the organisation’s network.
4. Educate Employees
Provide training and resources to educate employees on the risks of Shadow IT and the importance of adhering to company-approved tools.
5. Adopt Flexible IT Policies
Introduce policies that allow employees to suggest and use alternative tools, provided they meet organisational security and compliance standards.
6. Regular Audits
Conduct periodic audits to identify Shadow IT and assess its impact on the organisation’s infrastructure and security.
Benefits of Proactively Addressing Shadow IT
When managed properly, Shadow IT can offer insights into the tools and technologies employees find most useful. By integrating employee-preferred tools into the IT ecosystem, organisations can foster innovation and improve efficiency without compromising security.
Conclusion
Shadow IT is an inevitable byproduct of the modern workplace, driven by the need for flexibility, innovation, and efficiency. While it can provide short-term benefits, its unmanaged presence poses significant risks to organisational security and compliance.
Talk to us about our Shield package for your cybersecurity needs. For more information about how we can help you secure your business call us on 0333 444 3455 or email us at sales@cnltd.co.uk.
