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Shadow IT: Friend or Foe? Managing the Unseen Tech in Your Organization

Cybersecurity
Shadow IT: Friend or Foe? Managing the Unseen Tech in Your Organization

Shadow IT is gaining prominence for several compelling reasons in response to the rapid evolution of technology.

The accessibility and user-friendliness of digital tools have empowered individuals and teams to buy and implement their own solutions without formal IT approval.

But with innovation come risks such as data breaches, compliance issues, and a lack of centralized control.

In this blog, let us explore what shadow IT is, shadow IT examples, and its impact on cybersecurity.

What is the definition of shadow IT?

Shadow IT refers to the use of IT software, systems, devices, and applications without the approval or oversight of the IT team.

The term "shadow IT" means that unauthorized or unmanaged IT resources are operating in the background, outside the official IT infrastructure and policies. This is much like how shadows exist alongside and separate from the primary sources of light.

According to CISCO, 80% of employees in an organization are using shadow IT. The primary goal of shadow IT is to improve productivity and convenience.

What are some examples of shadow IT?

Here are a few examples of shadow IT:

  • Productivity apps like Clickup and Trello
  • Cloud services like Dropbox and Google to share work-related documents.
  • Collaboration tools like Slack or WhatsApp for work-related communication
  • Using personal email accounts for the transfer of work-related emails
  • Personal laptops, mobile phones, or tablets
  • Free and paid software
  • Using homegrown software applications or databases without the approval of IT

Why do people use shadow IT?

Easily available cloud apps, remote work and Bring Your Own Device strategies are the important reasons for the increase in shadow IT.

Here are a few reasons why people tend to use shadow IT:

  • To avoid unresponsive business IT systems.
  • To gain access to data or programs that are not present on company networks.
  • To test out cutting-edge technology.
  • To stay away from strict IT policies.
  • To save both time and money.

Is shadow IT a threat?

Earlier, organizations used to ban employees from using unofficial technology, but now they see it as something they can't stop. Organizations have now realized Shadow IT has some advantages:

  1. It helps teams adapt quickly to business changes and new technology.
  2. It lets employees use the best tools for their work.
  3. It saves money and resources by avoiding the need to buy new technology.

To reduce the risks, organizations now make sure shadow IT is aligned with the same security rules as official technology instead of banning it completely.

What are the disadvantages of Shadow IT?

IT cannot support or ensure the security of an application unless they are aware of it. Gartner predicts that one-third of attacks on an organization will be on its shadow IT resources.

Here are the most common threats imposed by shadow IT:

  1. Lack of visibility and control: Shadow IT operates unseen, increasing the risk of security issues and policy violations.
  2. Data Loss: Data in personal accounts may become inaccessible, and compliance with data policies may be neglected.
  3. Attack Surface Expansion: Each instance of shadow IT adds potential vulnerabilities outside of standard security measures.
  4. System Inefficiencies: Shadow IT can mask the need for necessary resources and create data accuracy and compliance issues.
  5. Cost: Initially cost-effective, shadow IT can become expensive when scaled, with added risks of fines and support costs.

How to identify and mitigate risks associated with shadow IT?

  • Use automated tools or employee surveys to discover all the applications in your software portfolio.
  • Check if the discovered apps comply with your standards and were involved in any data breaches.
  • Leverage APIs to track how applications are used.
  • Optimize or retire underutilized applications or software.
  • Establish procedures for buying and renewing subscriptions.
  • Add a business case to software requests and set up renewal calendars.
  • Regularly monitor your network for new applications and updates.
  • Ensure compliance with security policies, data handling, and cost management.

Final Thoughts:

Shadow IT can pose security, compliance, and management challenges, although it satisfies employees' needs for flexibility and efficiency. Access to your network and IT infrastructure is crucial to safeguarding your organization. FourD provides you with the knowledge to detect hazards and the visibility you need to take corrective action. Contact us to upgrade your organization's security.