The Hidden Costs of Shadow IT

Shadow IT refers to using software and apps that are unauthorized or unmanaged by your IT department. This occurs if there are limitations to the existing IT setup or there's a need to solve business needs quickly with an app that can fill the void. While it might seem like a cheap and easy fix, it can create unexpected costs and risks for IT departments.

An AI-native identity security and governance platform like Josys can help IT departments deal with the unexpected expenses of shadow IT.

The Cost of Shadow IT

There are several hidden costs that come with shadow IT that IT teams may not initially account for. These include:

Redundant spending

Without proper oversight, departments may spend money on software that replicates tools already available. For example, two departments may pay for different project management tools with similar capabilities. This leads to wasted spending across the company.

Security vulnerabilities

When employees use unauthorized applications, these apps bypass standard security protocols. This means data shared through these tools could be exposed to breaches or regulatory violations, leading to costly fixes or fines.

Productivity loss

Dealing with unauthorized software and data security issues takes significant time from IT staff, including dealing with potential breaches, onboarding, and troubleshooting shadow IT tools.

Reducing the Hidden Costs of Shadow IT

To minimize the hidden costs of shadow IT, IT departments can take several approaches. Here are some ways IT departments can reduce these costs:

Leverage IT asset management tools

Deploy AI-native identity security and governance platforms like Josys to gain visibility into all software and applications within the organization. This allows IT to identify and address shadow IT efficiently.

Foster a culture of IT collaboration

Encourage departments to communicate their software needs to IT early. By streamlining the approval process, employees are more likely to seek authorized solutions.

Standardize software usage

Establish clear guidelines for which tools employees can use. By standardizing solutions across departments, IT can reduce redundancies and lower costs.

Conduct regular audits

Regularly review the software landscape to spot unauthorized tools and eliminate inefficiencies early on.

Educate employees

Training employees on the risks of shadow IT empowers them to make better decisions. Awareness of security risks can deter unauthorized software use.

Streamline approval processes

Simplify the process for requesting new tools. When the IT approval process is quick and user-friendly, employees have less reason to seek out unauthorized alternatives.

Automate routine processes

By implementing efficient AI-native identity security and governance platforms like Josys to manage software better, IT teams can reallocate time and resources toward strategic initiatives instead of manual tracking.

Conclusion

Shadow IT might seem like an easy solution for employees, but it comes with significant hidden costs for IT departments. By leveraging solutions like Josys, companies can effectively manage their software assets, reduce costs, and keep their operations secure.

Want to see how Josys can help your team tackle shadow IT? Request a demo today.