5 signs that Shadow IT lurks in your company
A growing trend, “Shadow IT” is a term used to describe IT systems and solutions built and/or used inside organizations without the approval of the IT department. This could include anything from employees emailing spreadsheets back and forth to entire departments licensing third-party, cloud solutions behind IT’s back.
While the usage varies, one thing is certain: Shadow IT is growing.

Why does this happen? Why are employees bypassing the IT department with greater frequency? While this article explains a few reasons why Shadow IT happens, it usually boils down to a simple problem: The demand for IT solutions outweighs the supply. When that happens, employees seek out their own solutions.
Now, why is this a problem? Since Shadow IT usually happens on the sneak, IT departments don’t know where (or how much) it’s happening. This means they can’t monitor the spread of company data, and therefore–cannot secure any data involved in Shadow IT. What risks does this create? Steven Lowe, Founder/CEO of Innovator, LLC, sums it up nicely below:
“There are two risks from shadow IT:
1. Critical company information floating around outside of managed channels risks data inaccuracy, loss, and leaks. ‘Home-grown’ data systems may produce data that is inaccurate, lacking integration with IT reference data sources. Sometimes this may not matter, but sometimes it might. Mis-sending an email with the company payroll data attached as an unprotected spreadsheet may be a big deal, and it may not. It all depends on the data and the organization.2. Critical company information being shared only within a closed group risks missed opportunities and omissions. Data (and software) that IT doesn’t know about cannot be used to enhance organizational knowledge and processes. If IT doesn’t know the data exists, they can’t take advantage of it, and the company may miss strategic opportunities.”
All that being said, here’s the big question: How can businesses know whether or not they even have a Shadow IT problem, considering it’s practiced on the sneak? What signs and signals should IT leaders watch for to identify business users and departments practicing Shadow IT? While I’m sure there are more, I’ve rounded up 5 of the biggest signs that Shadow IT is alive and well in your company.
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