Shadow IT in the Modern Workplace: Expert Advice on Prevention and Control

‍

The way we work has fundamentally changed. The days where we worked 9 to 5 are gone, replaced by a more flexible, remote-first work environment. This shift has created a new challenge for IT organizations: Shadow IT.

This article discusses the pressing issue accelerated by the pandemic: the surge of Shadow IT.

Joshua Peskay, a 3CPO (CIO, CISO, and CPO) at RoundTable Technology, sheds light on how remote work has prompted employees to turn to unauthorized applications, inadvertently putting sensitive organizational data at risk.

With Joshua's expert insights, you'll gain a deeper understanding of the challenges posed by unsanctioned apps and discover strategies to safeguard your organization's data effectively.

‍

TL;DR

• Remote work has led to a rise in Shadow IT, where employees use unauthorized applications, posing security risks.
• Reasons for Shadow IT include lack of awareness, inaccessible tools, and siloed departments using different apps.
• Security risks include data breaches, malware attacks, and non-compliance with regulations like PHI and PII.
• Solutions include fostering open communication, educating employees on approved tools, and prioritizing user-friendly alternatives.
• Effective management of Shadow IT can improve security, reduce costs, and boost productivity using tools like CloudEagle.ai for visibility and control.
• Regular monitoring and collaboration between IT and employees help prevent security threats and optimize app usage.

‍

What is Shadow IT?

"Shadow IT" refers to unauthorized applications and services used within an organization. These tools exist outside the IT department's approval process, creating significant security risks. As Joshua says, "Staff members often resort to unauthorized applications" to work remotely and stay flexible.

A recent study suggests that 30-40% of IT spend in large enterprises goes towards shadow IT While employees often resort to shadow IT to improve productivity and efficiency, it can introduce significant security risks for organizations.

‍

Reasons Why Shadow IT increases

There are several reasons why Shadow IT flourishes. "I find that a lot of times people are just ignorant about the tools they already have in the company," says Joshua.

Lack of Awareness

Employees may simply be unaware of the tools and resources already available within the organization. As Joshua puts it, "They might just start using Dropbox without approval and start storing files there. They think I work remotely, and I'm not trying to do anything malicious I'm just trying to get work done flexibly."

They lack the knowledge that the organization might already have solutions that address their needs. Even though they just want to get the work done and are not using the software with malicious intent, these unsanctioned applications can cause significant security and financial risks to the organization.

Inaccessible or Inefficient Tools

Sometimes, sanctioned IT tools can be clunky, difficult to use, or lack the necessary features.

Joshua emphasizes this point, highlighting the shift in work styles, "The workforce wants flexibility to work from anywhere, anytime, on any device. If organizations don't offer meaningful support, employees seek their own solutions."

Procuring SaaS tools has become simpler, with users often bypassing IT approval by using corporate credit cards to purchase. So, if they find the sanctioned application not flexible enough for that task, they won't second-guess purchasing an unsanctioned application to complete their task.

Silo effect

Different departments within the organization might adopt different apps to suit their specific needs, creating a situation where resources are duplicated, and IT lacks visibility into the data flow.

This lack of visibility turns out to be one of the major reasons for the increase in shadow IT.

‍

The Dark Side of Shadow IT

While Shadow IT might seem like a harmless productivity hack, it can introduce significant security risks for organizations, including:

Data Breaches: Unauthorized applications may not have the same robust security protocols as sanctioned tools, increasing the vulnerability of sensitive data to breaches.

Malware and Ransomware: Shadow IT applications are a prime target for malware and ransomware attacks. These attacks can cripple an organization's operations and lead to significant data loss.

Compliance Issues: Organizations with sensitive data like PHI (protected health information) or PII (personally identifiable information) must comply with strict data security regulations. Shadow IT makes it extremely difficult to ensure compliance with these regulations.

Joshua emphasizes, "These shadow applications are often storing sensitive information, like personally identifiable information (PII) or protected health information (PHI), and that creates a huge amount of risk for the organization."

‍

Shining a Light on the Solution

Addressing Shadow IT doesn't have to stifle employee productivity. Here are some insights from Joshua on how to manage Shadow IT effectively:

Fostering Transparency

Instead of a punitive approach, foster open communication with employees. Understand their needs and the challenges they face when using sanctioned IT tools.

Joshua suggests a collaborative approach: "In a nonjudgmental, noncritical manner, inquire why you're using this tool. What work challenges prompted its use over alternatives available? Were you aware that we may have a solution for that?"

Understanding the rationale behind Shadow IT enables organizations to provide more effective solutions to prevent it from happening.

Educating Your Workforce

Many employees are simply unaware of the features and functionalities of available IT tools. Invest in training programs to educate employees about the benefits and proper use of sanctioned IT solutions.

"The goal is not to come in and shut everything down," says Joshua. Instead, raise awareness about the risks of Shadow IT and the benefits of approved tools. Explain how existing tools can address their needs and showcase success stories from other departments using those tools.

Prioritize Usability

Assess your current IT infrastructure. Are your tools user-friendly and intuitive? According to Joshua, adopting a user-centric approach is crucial.

He emphasizes that simply resorting to shutting down tools through admin portals can be counterproductive. "If you come in with a 'Department of No' attitude, they're just going to work around you," he advises.

This insight underscores the importance of streamlining IT processes and fostering a positive user experience to mitigate reliance on Shadow IT.

Consolidate and Secure

Offer robust and user-friendly alternatives to encourage the adoption of sanctioned tools. Consolidate features across existing tools to minimize the need for additional apps. Prioritize a user-friendly experience to make sanctioned tools easy to adopt and navigate.

The ROI of Effective Shadow IT Management

By taking a proactive approach to Shadow IT management, organizations can not only mitigate security risks but also improve employee productivity and satisfaction.

Joshua points out that “Shadow IT can also represent a missed opportunity for cost savings. Fortunately, there are tools available to help organizations combat Shadow IT. CloudEagle.ai, for instance, is a valuable asset for identifying unauthorized applications. It helps me identify all that stuff," says Josh.

Once Shadow IT is identified, CloudEagle.ai can also help determine how much the organization spends on these unsanctioned apps. Then, IT teams can analyze the usage of these apps, contact the users who purchased them to understand their reasons for using an unsanctioned application and optimize them.

‍

The Future of Secure Collaboration

By working together, the IT team and employees can create a secure and efficient work environment. Here's what the future holds:

Focus on User Experience: IT departments should prioritize user-friendly and accessible solutions to discourage employees from resorting to Shadow IT.

Embrace SaaS management: Organizations should invest in SaaS management platforms like CloudEagle.ai. These platforms can integrate with internal systems and provide complete visibility into your app portfolio. They can also identify and prevent shadow IT early in its stages and optimize your stack.

Continuous Monitoring: Regular monitoring of IT infrastructure and user activity is crucial for early detection and mitigation of Shadow IT risks. Proactive monitoring can help identify and address unauthorized app usage before it becomes a major security threat.

By understanding Shadow IT and taking proactive steps, you can keep this monster at bay and ensure a secure and productive work environment for your entire team.

‍

Conclusion

In today’s flexible and remote-first workplace, Shadow IT is an inevitable challenge, but it doesn’t have to compromise your organization’s security or efficiency.

By improving transparency, educating employees, and offering user-friendly alternatives, you can mitigate the risks posed by unsanctioned apps while maintaining productivity.

With proactive management, robust monitoring, and the right tools like CloudEagle.ai, you can take control of your SaaS environment, eliminate Shadow IT, and optimize your software spend.

Don’t wait for Shadow IT to become a costly problem—take action now. Book a demo with CloudEagle.ai and discover how our platform can provide full visibility into your SaaS stack, prevent unauthorized app usage, and ensure your IT infrastructure stays secure and compliant.

‍

‍