Knowledge base

October 04, 2024

What is Shadow IT and why is it a risk for businesses?

Shadow IT is a term that refers to the use of IT systems, software and devices within an organization without IT department approval.
This often occurs because employees want quick solutions to their daily tasks without waiting for formal approval of IT solutions.
While this often seems innocuous, it can pose serious risks to a company’s security and compliance.
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Why does Shadow IT arise?

ShadowIT often arises due to various reasons, such as:

  • User-friendly tools: Employees often look for user-friendly tools that make their work faster and easier, without having to follow IT processes.
  • Slow approval: Official processes for approving new tools or software can sometimes be slow, motivating employees to look for solutions on their own.
  • Rising SaaS solutions: With the rise of cloud-based SaaS (Software-as-a-Service) solutions, it is easier than ever for employees to download and use tools without IT intervention.

The risks of Shadow IT 🚨

While using unauthorized tools is often done with the best of intentions, it does carry risks:

  • Data security: ShadowIT makes it harder to protect data because IT departments do not have visibility into all the systems and applications in use.
  • Compliance issues: Many industries have strict data management regulations (such as GDPR).
    ShadowIT can result in a company not complying with these regulations.
  • Insufficient support: When something goes wrong with an unapproved tool or software, the IT department may not be able to provide the necessary support, which can lead to downtime and inefficiency.
  • Cost management: Shadow IT can also lead to uncontrolled costs as multiple licenses and subscriptions are taken out of formal IT processes.

How to Prevent Shadow IT. 🛡️

Companies can take several steps to reduce Shadow IT and mitigate risks:

  • Create awareness: Education and training are essential.
    Employees need to understand why it is important to use approved IT solutions.
  • Faster approval processes: By speeding up approval processes, you prevent employees from using unauthorized tools out of frustration.
  • Better collaboration between IT and departments: Regular communication between IT and other departments allows companies to select tools that meet both user needs and security standards.
  • Shadow IT monitoring tools: Solutions are available that help IT departments gain visibility into all devices, software and systems used within an organization.

ALTA-ICT’s Role in Fighting Shadow IT

ALTA-ICT offers a comprehensive and effective approach to combat Shadow IT within organizations.
With advanced technologies, such as zero trust endpoint protection and Application Allowlisting, ALTA-ICT ensures that unauthorized software is quickly detected and blocked.
This strengthens your organization’s security and helps establish a reliable Zero Trust framework.
With ALTA-ICT on your side, companies can proactively address the risks of Shadow IT and ensure that only approved applications have access to corporate data.
This not only increases security, but also the efficiency of your IT processes. Are you curious about how ALTA-ICT can support your organization? Please feel free to contact us.

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Shadow IT