How MSPs Can Tackle Shadow IT

Shadow IT is a major concern for today’s organizations, often slipping past IT teams without notice. In an effort to get work done faster, employees may turn to unapproved apps or cloud tools, unintentionally creating security gaps, compliance violations, and data vulnerabilities.

This is where Managed Service Providers (MSPs) become invaluable. With the right tools and expertise, MSPs can uncover shadow IT usage, implement control systems, and offer trusted, approved alternatives that empower teams without compromising on compliance. They help organizations strike the ideal balance between flexibility and control.

Key Insights

• MSPs deliver visibility and management over shadow IT
  
  
• Working with an MSP supports both productivity and protection
  
  
• Their hands-on experience helps execute smart, scalable strategies

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The MSP’s Role in Managing Shadow IT

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How MSPs Support IT Environments

MSPs are external partners dedicated to overseeing and improving IT infrastructure. Their services range from cloud and network monitoring to cybersecurity and support operations. Equipped with advanced tools, they’re able to detect unusual activity, ensure adherence to internal policies, and maintain system performance.

Thanks to their specialized teams and constant updates on tech trends, MSPs are well-positioned to combat modern challenges like shadow IT, deploying proactive solutions that minimize risk.

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Monitoring and Governance

To identify shadow IT, MSPs set up sophisticated tracking systems that monitor software usage and user behavior. These tools uncover unauthorized applications and help define policies around tech adoption and approval.

MSPs then work with clients to put guardrails in place, outlining usage guidelines, approval paths, and periodic reviews. This structured oversight reduces the likelihood of rogue app adoption.

Routine audits conducted by MSPs further help uncover hidden apps and reduce blind spots, making it easier to intervene before issues escalate.

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Advantages of MSP Support

MSPs draw on broad industry experience to spot shadow IT risks early and implement tried-and-true fixes. They use intelligent security tools to prevent unauthorized access and provide workshops or trainings to educate teams about safer software practices.

In addition, MSPs introduce secure, scalable alternatives that meet business needs, helping teams stay efficient without relying on unapproved tech.

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Using SaaS Management Platforms to Strengthen Control

Modern SaaS management tools, such as Josys, equip MSPs with powerful features to limit shadow IT and manage client environments with precision.

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Key Capabilities

• Auto-discovery of cloud applications
  
  
• Centralized user access controls
  
  
• Security and compliance tracking
  
  
• Integrations with ID providers and PSA tools

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What Josys Offers MSPs

Josys is purpose-built for MSP workflows. It offers a multi-tenant environment, custom dashboards, automated processes, and integrations with PSA and RMM platforms. This makes it easy to manage multiple clients with efficiency and clarity.

With deep discovery capabilities—including traffic scanning, SSO data pulls, and finance system insights—Josys builds a full picture of both authorized and shadow apps. Applications are sorted by function, security risk, and compliance status, enabling MSPs to prioritize their efforts effectively.

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Automating Lifecycle Management

Josys also makes onboarding and offboarding SaaS tools seamless.

For onboarding, workflows can:

• Create new accounts
  
  
• Assign licenses
  
  
• Apply necessary security configurations
  
  
• Integrate with existing systems

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When retiring tools, Josys ensures:

• Data backup is handled
  
  
• Access is revoked
  
  
• Licenses are recovered
  
  

This reduces manual effort, standardizes processes, and minimizes human error.

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Unified SaaS Oversight

The Josys platform delivers a central view across all clients, showing:

• App usage metrics
  
  
• License status and utilization
  
  
• Active users
  
  
• Risk and compliance posture
  
  

With fine-grained controls and detailed reports, MSPs can take swift, informed action while demonstrating the value of their services.

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Real-World Success: Josys + MSPs

One MSP managing 50 client environments adopted Josys and saw immediate improvements:

• Identified 30% more SaaS tools than initially known
  
  
• Streamlined license management and eliminated unused apps
  
  
• Reduced security risk by locating shadow IT activity
  
  

Another MSP drastically sped up onboarding, slashing configuration time from several days to just hours. A third provider, focused on financial services, used Josys to streamline compliance processes, automate audits, and maintain consistent oversight.

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Conclusion

Shadow IT continues to be a growing issue, but it’s far from unmanageable. With the right partner, companies can regain control and reduce exposure.

MSPs bring the people, tools, and frameworks to uncover shadow IT, enforce smarter policies, and optimize how software is used. Combined with platforms like Josys, they help businesses maintain compliance, strengthen visibility, and stay secure, without slowing down day-to-day operations.

Looking to control SaaS sprawl and tighten your shadow IT management? Request a free demo of Josys and explore how it can elevate your MSP offering.

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