There’s a quiet rebellion happening inside most companies, and it’s probably happening right now at yours. It’s not malicious, it’s not intentional, but it is dangerous. It’s called Shadow IT: the use of apps, tools, and systems by employees without the knowledge or approval of the IT department.
That spreadsheet someone built on their personal Google Drive? Shadow IT. The marketing team using an unapproved AI design tool? Shadow IT. The sales rep storing client contracts in a personal Dropbox folder? Yep, Shadow IT again.
And while it often starts with good intentions (“I just needed something quick”, “Our tool wasn’t working”, “This was easier to use”) the consequences can be enormous. From data breaches to compliance violations to lost intellectual property, Shadow IT opens doors most companies can’t afford to leave unlocked.
The growing beast: how Shadow IT took over
The rise of cloud tools, freemium apps, and remote work has fueled the spread of Shadow IT. According to a Gartner study, by 2020, 30% to 40% of IT spending in large enterprises was occurring outside the IT department. And it hasn’t slowed down. Cisco’s Cloud Security Report found that the average company uses over 1,000 cloud services, most of which are unsanctioned and untracked by IT.
Let that sink in: over a thousand apps potentially exchanging sensitive data, completely outside your visibility. You don’t know where your data lives, how it’s protected, or even who has access to it.
A real-world example? In 2017, a major UK bank experienced a data leak after employees used unauthorized file-sharing platforms to collaborate on internal documents. No hacks. No cybercriminals. Just Shadow IT.
Why you need to care (a lot)
The biggest problem with Shadow IT isn’t the tools themselves. It’s the fragmentation and exposure they create. When your team uses unapproved tools, you lose control over where your data is stored, who can access it, and how secure it is. This can lead to:
- Data breaches – unsecured or non-compliant platforms may lack encryption, access controls, or audit logs.
- Compliance violations – if you’re subject to HIPAA, CJIS, GDPR, or any data regulation, unsanctioned tools put you at risk.
- Operational inefficiencies – disconnected systems make it harder to collaborate, manage permissions, and respond to incidents.
Shadow IT is the wild west of your tech environment, and in cybersecurity, rogue cowboys don’t end well.
Preventing Shadow IT: You need more than rules
Let’s be honest: you can’t fight Shadow IT with a stern email. Blocking downloads and scolding employees won’t work in a world where signing up for a SaaS tool takes 30 seconds and a credit card.
Instead, the battle against Shadow IT starts with understanding why employees seek these tools. Maybe your current software is outdated. Maybe processes are too slow. Or maybe they just don’t know what’s allowed.
Education is key, but so is offering usable, modern solutions. If employees feel heard and supported, they’re far more likely to stay in bounds. Here are a few strategies that work in the real world:
- Offer approved alternatives: Provide modern, flexible tools that meet the needs of different teams. If your marketing team needs an intuitive design platform, offer one. If HR needs an anonymous feedback tool, find one.
- Create a feedback loop: Encourage employees to suggest new tools, and have a process in place to evaluate and onboard them properly.
- Monitor traffic intelligently: Use network tools that provide visibility into which apps are being used, without immediately punishing usage.
- Build a culture of trust and transparency: Make sure teams know that IT is a partner, not a gatekeeper.
Where an MSP Comes In
Managing Shadow IT on your own can feel like playing whack-a-mole with blindfolds on. That’s where a Managed Service Provider (MSP) can step in as your technology partner, not just a vendor.
An MSP brings both the tools and the experience to identify Shadow IT without disrupting workflows. They can implement solutions like:
- Cloud Access Security Brokers (CASBs) that monitor and manage unsanctioned apps
- Endpoint management platforms that flag risky behaviors
- Data loss prevention (DLP) tools that guard sensitive information
- Ongoing compliance audits to ensure you’re meeting your regulatory requirements
More importantly, a good MSP will work with your teams to build user-friendly processes that reduce the need for Shadow IT in the first place. Instead of locking doors, they help you open better ones.
Let’s talk about risk (and opportunity)
Here’s the twist: Shadow IT isn’t always born from bad behavior. It’s often a signal that your teams are resourceful, fast-moving, and eager to improve workflows. That’s a good thing, if you can channel it.
Rather than seeing Shadow IT as a threat to eliminate, consider it a signpost. What do your teams need that they’re not getting? What friction is pushing them to look elsewhere? Use this insight to improve your official IT roadmap and build a more responsive digital workplace.
Because at the end of the day, the real goal isn’t to eliminate Shadow IT. It’s to make sure there’s no reason for it to exist.
If you’re not talking about Shadow IT in your organization, chances are it’s already talking behind your back. Whether you’re a 10-person team or a 1,000-person enterprise, now’s the time to shine a light on your shadow.
And if you’re not sure where to start, Syntech can help you take that first step. Contact us and let’s create together a safe workplace.
