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A Practical Guide to Managing Shadow IT in Your Business

A Practical Guide to Managing Shadow IT in Your Business

May 30, 2025

Shadow IT may have a pretty cool-sounding name, but its impacts on your business are anything but. The term “shadow IT” describes any technology used in the business setting without the express knowledge and go-ahead of the IT department. While it may be common, it certainly isn’t good… despite often having the best intentions behind it.

What Leads to Shadow IT?

Let’s look at the situation through the lens of a hypothetical, hapless employee:

Let’s say that Michael is given a task to complete, and the company uses Software 1 as their approved option to fulfill that particular task. However, Michael prefers to use Software 2 in his personal life… he just prefers the interface, and there are some extra features he finds useful. With the best of intentions, Michael takes it upon himself to install Software 2 onto his company workstation so he can accomplish more, faster.

Up to this point, this doesn’t sound necessarily bad. Michael is taking initiative to optimize his own productivity, after all, and if he’s successfully increasing his professional output, that’s good for the company… right?

Unfortunately not.

Little does Michael expect that the software he downloaded also features a bit of code that sends every bit of data he processes through it off to some unknown entity, which then sells it to whoever will pay for it… including cybercriminals. 

As a result, Michael is responsible for directly enabling cybercrime… and again, his intentions were perfectly fine. It’s the shadow IT of it all that makes it so bad.

What Makes Shadow IT So Dangerous?

There are a lot of business issues and security risks that shadow IT contributes to, including:

  • Data breaches via insecure or openly malicious applications
  • Compliance issues and violations, particularly with data privacy laws
  • Data silos, preventing the entire organization from accessing the same information
  • IT resources going to waste
  • Lack of compatibility between different tools

Any of these outcomes ultimately detract from the business experiencing them. So, what is to be done?

How to Address and Manage Shadow IT

There are plenty of ways to help minimize the risk of shadow IT that you can—and should—undergo.

First, examine why shadow IT may be present in the first place.
It’s important that you recognize there are generally reasons that a team member would be motivated to use shadow IT at all. So, instead of simply putting the kibosh on any sample of shadow IT you find, have your IT resource vet it and see if it is a secure and viable option for your business moving forward. Even if it isn’t, note that someone thought your approved tool wasn’t supporting their needs. It may be your sign to change course.

Second, communicate the dangers of shadow IT with your team.
You need your team members to know and understand all the risks we referenced above, so they are less inclined to seek out shadow IT, and more likely to go through proper channels to improve things.

Third, you need to have alternatives ready.
On a related note, it is worthwhile to be proactive and always seek out better options for your business to use. By taking the initiative and considering alternatives in advance, your team can be more confident that you’re always looking to support their work.

Four, establish processes and policies.
Not only do you want your team to have no questions about what is appropriate behavior around company data and tools, but also how to properly request that alternatives are taken into consideration by your IT staff.

Fortunately, you don’t have to handle all this by yourself.

Turn to Us for Help in Managing Your Shadow IT Concerns

Our team will be there in the background, keeping an eye on your network and tools to ensure everything is maintained properly and that everything used is properly vetted and approved. Find out more about how we can help provide your team with the tools they’ll need to be productive and safe. Reach out at (571) 470-5594 today.

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