Shadow IT is the use of third-party software, devices, and services by departments without the approval of the explicit IT department.
It includes all IT-related activities and purchases that do not involve the IT department.?
Information Systems in large organizations can be a headache to use. One of the main reasons for this is that while developing solutions, organization needs are prioritized, not the end user. And even when one gets used to them, there are chances that gaps are present in the software. To get the desired results, it is not uncommon for departments to purchase or even design software without knowledge or supervision from a centralized IT department. Some of the best examples of Shadow IT are Microsoft Excel, Google Docs, Slack, Trillo etc.
Another reason is to lower their dependence on the IT department. Employees might not get the desired results from the IT department, waiting for their approval might take longer than usual, etc. To increase their productivity and better utilize their time, team members may create solutions to lower their dependencies on the IT department to improve efficiency. Waiting for approval from an IT department may take the time that team members believe they can use for other productive tasks.?
- Quick response to change: With the use of shadow systems, employees can adapt to the needs and changes with their technology and resources. They don't have to wait for the IT department's approval and can address the change quickly and efficiently.
- Speeds up innovation: When business users convey their requirements to the IT department, some details might get lost in translation. The solution presented to them might not be enough to satisfy their requirements. With Shadow IT, users use their resources to resolve a need.?
- Highlights issues within the organization: Shadow IT highlights the problems and challenges employees face daily in their jobs, giving an idea to both the IT department and the Upper management on areas that need attention.?
- Identify innovative employees: The people who often turn towards Shadow IT are usually the most invested. They are opting to choose third-party platforms to solve their problems. By doing so, they identify the best ways to solve the problems within an organization's system, thus helping them in return.?
- Lessens the burden on the IT department: In most companies, the IT department is overworked. They keep the technology running, support the business, and are constantly putting out fires. Handling end-user requests for new solutions only add to their list of tasks. When Shadow IT is embraced, end users have access to pre-approved solutions. This removes a burden from the IT department and lets them focus on mission-critical tasks.
- Compromise Data Security: The use of unauthorized systems may subject sensitive data to security threats. The employee may unintentionally give access to confidential information such as vendor contracts or customer lists in the wrong hands. In the case of data loss, the IT department might be unable to perform disaster recovery measures when required. It is of utmost importance that employees are educated about data security to avoid such mishaps.
- Adds extra costs: Once Shadow IT becomes an integral part of a project, team members might not be able to work efficiently without it, and the cost incurred by the organization might rise. Some examples are SaaS applications such as Google Drive, iCloud, etc.?
- Creates Organizational Dysfunction: Shadow IT may lead to disputes between IT and non-IT departments. Deploying third-party solutions means that the software the IT department developed is inefficient. And instead of working to improve that, the team members just chose to trust an unauthorized program, causing severe management issues.?
- Missed opportunities to improve: The use of shadow systems implies that the tech team of the organization wasn't able to develop software that gave the organization a unique advantage over its competition. Working with the IT department and solving problems is better for the future.
Shadow IT can be either a boon or a bane for an organization depending on how the employees use it and how the organization manages it.
By understanding Shadow IT, and its advantages, and establishing policies and countermeasures against the risks involved, it can become a powerful tool, driving innovation and creating opportunities for improvement.?
