The Evolution of Shadow IT: A Governance Solution for Future Success

The rise of cloud computing has brought benefits and challenges to IT governance. It has helped businesses scale and work more efficiently, but it also has enabled employees with easy access to tools and software without any IT oversight. Signing up for SaaS solutions has become incredibly easy. With just an email address and a credit card, anyone can start using a SaaS service. This phenomenon, known as Shadow IT, is increasingly challenging for modern businesses to navigate.

According to Statista, 65% of IT leaders say that managing Shadow IT is one of their biggest challenges. With more employees working from home due to the post-pandemic world, this number is expected to grow. The good news is that Shadow IT can be managed, and a robust AI-native identity security and governance platform like Josys can change this ecosystem.

This article will explore the evolution of Shadow IT, its governance solutions, and its role in shaping the future of digital workplaces.

What is Shadow IT?

Shadow IT is any type of IT (hardware, software, or services) within an organization that is not sanctioned or managed by the corporate IT department. This can include anything from employees using personal devices for work to deploying cloud-based services without IT's knowledge or approval.

In other words, Shadow IT is the use of IT resources outside the boundaries of the official IT department. It's called "shadow" because it operates in the shadows, outside the light of official IT management and oversight.

What Caused Shadow IT?

The rise of Shadow IT can be attributed to the proliferation of readily available, easy-to-use technology. Today, it's easy for employees to sign up for and use various software applications, tools, and services without the involvement of the IT department. This is especially true for cloud-based services, which can often be accessed from any device with an internet connection.

Furthermore, the growing trend of remote work has increased the use of Shadow IT. With employees working from home, they often use personal devices and software that are not sanctioned by the IT department.

Why is Shadow IT a Problem?

While Shadow IT can be a sign of employee initiative and creativity, it also presents significant challenges for businesses. Some of the most notable include:

Security Risks

Unauthorized software and services often lack the robust security measures that the IT department would otherwise enforce. This can lead to data breaches and other security incidents.

Compliance Issues

Shadow IT can lead to non-compliance with regulatory requirements, as IT cannot ensure that unapproved software meets the required standards for data privacy and security.

Wasted Resources

Shadow IT often leads to duplication of resources. For example, different departments might use different software for the same task, leading to wasted spending.

How Has Shadow IT Evolved?

Shadow IT has evolved significantly since its early days. Initially, it was primarily about employees using personal devices for work. But with the rise of cloud computing and Software as a Service (SaaS), it has expanded to include unauthorized use of these services.

Today, Shadow IT often involves employees using SaaS applications without IT's knowledge. For example, an employee might use a cloud-based project management tool that has not been approved by the IT department. This is particularly common in larger organizations where IT processes can be slow and bureaucratic.

How Josys Addresses Shadow IT

Josys is designed to address the challenges of Shadow IT. It provides IT departments with complete visibility into all the SaaS applications being used within the organization, whether they are sanctioned or not. This allows IT teams to identify and manage Shadow IT effectively.

Furthermore, Josys offers tools that allow IT departments to streamline the SaaS application lifecycle, from procurement to decommissioning. This helps to reduce the occurrence of Shadow IT by making it easier for employees to access the tools they need through official channels.

Conclusion

The evolution of Shadow IT presents significant challenges for businesses, but it also presents opportunities for those who can navigate it effectively. With the right tools and strategies, managing Shadow IT can become a non-issue.

By leveraging solutions like Josys, IT departments can gain visibility into all SaaS applications within their organization, manage them effectively, and reduce the risks associated with Shadow IT. This not only helps to secure the organization's data and systems but also allows IT departments to better support the business in achieving its strategic goals.

Want to learn more about how Josys can help your organization manage Shadow IT? Request a demo today.