For many IT departments, the words “Shadow IT” used to spark concern—images of rogue software, unsecured devices, and compliance nightmares. However, in today’s cloud-first, fast-moving teams, Shadow IT isn’t just unavoidable—it’s evolving. The question is no longer how to eliminate it, but how to understand and manage it in a way that balances innovation with governance.
What Does Shadow IT Look Like Today?
Shadow IT has shifted. It’s no longer just someone installing a risky file-sharing app or using an unauthorised device. Today, it often comes in the form of:
- Teams are using SaaS apps without informing IT.
- Departments subscribing to cloud tools with corporate credit cards.
- Collaboration platforms set up outside of enterprise controls.
And while the intent is often positive—faster work, better tools, greater autonomy—it brings risks.
The Risks of Shadow IT
Unchecked, Shadow IT can create serious challenges:
- Security and compliance gaps – Unknown apps may lack encryption or expose data to unauthorised access.
- Integration complexity – Apps and systems may not work well together, leading to data silos.
- Cost inefficiencies – Duplicate tools or unused licenses can lead to increased expenses.
- Data governance issues – Sensitive information may be stored or shared outside of approved systems.
But There’s Another Side to It
Shadow IT is also a signal—that people are trying to solve problems and improve how they work. Ignoring it means missing out on:
- Innovation from the ground up – Users often discover tools that better meet their needs.
- Faster time to value – SaaS tools can be deployed and scaled quickly.
- Improved employee experience – Teams feel empowered to choose what works best for them.
Finding the Balance: Control Without Constraining
So, how can IT leaders manage Shadow IT without killing innovation?
1. Acknowledge and Assess
Start by identifying what tools are in use across the organisation. Don’t punish teams—engage them. Understand why they chose the tool, what value it provides, and what risks may be present.
2. Establish a Clear Governance Model
Define policies for SaaS adoption, usage, and retirement. Leverage COBIT, ISO/IEC 27001, or other frameworks to align risk management with business agility.
3. Create a “SaaS-onboarding” Process
Make it easy for teams to bring their tools into the light. Offer a lightweight approval process, clear data security guidance, and a catalogue of pre-approved services.
4. Partner with Procurement and Finance
Collaborate with other business units to track SaaS spending and avoid duplicated services. This can also help in vendor negotiations and license optimisation.
5. Encourage Voluntary Disclosure and Improve Visibility
Instead of relying on discovery tools—which often can’t detect cloud-based SaaS usage—encourage teams to self-report the tools they rely on. Integrate these services into your Configuration Management Database (CMDB) through collaborative efforts and education, helping IT maintain a clear view of service dependencies.
Shadow IT as a Strategic Input
Rather than treating Shadow IT as a threat, use it as a barometer of unmet needs. It tells you where existing tools fall short and where your service delivery could evolve. With the right approach, Shadow IT becomes a collaborative opportunity—not a compliance headache.
💡 Need help building a governance strategy that embraces innovation while managing risk? Northera IT Solutions can help you design processes that bring Shadow IT into the light—securely, sustainably, and smartly.
