Is Shadow IT a Lost Cause?

Gartner, Magic Quadrant for SaaS Management Platforms, Tom Cipolla, Yolanda Harris, Jaswant Kalay, Dan Wilson, Ron Blair, Lina Al Dana, 22 July 2024
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Is Shadow IT a Lost Cause?

Is your IT department perpetually playing catch-up with unauthorized software? Shadow IT can feel like a never-ending battle. We get it—managing IT in a rapidly evolving digital landscape is complex and daunting. But is Shadow IT truly a lost cause? If you want to go deeper on this topic, read our shadow IT guide. 

What is Shadow IT?

Shadow IT refers to using information technology systems, devices, software, applications, and services without explicit IT department approval. Historically, it has been seen as a risky practice, potentially leading to security vulnerabilities, data breaches, and compliance issues.

Is Shadow IT Really Unmanageable?

Contrary to the belief that shadow IT is uncontrollable, it’s actually far from being a lost cause. The latest advancements in Software Management Platforms (SMPs) provide an unprecedented level of insight into shadow IT activities. According to Torii’s Q1 2024 SaaS Benchmark report, the growth rates of shadow IT and Shadow AI are indeed shocking, but for the first time, this growth is fully visible. The transparency offered by these platforms allows IT departments to monitor, identify, and address shadow apps in real time.

What Do SMPs Offer?

SMPs like Torii go beyond just discovery. They offer capabilities to design workflows that continuously monitor for unauthorized applications. This proactive approach not only mitigates potential risks but also gathers valuable information on which tools teams are using. By understanding these trends, IT departments can better tailor their official SaaS stack to incorporate popular emerging tools early, thus reducing the inclination towards shadow IT.

How Does This Change IT’s Role?

The level of insight provided by SMPs transforms the role of IT departments. Instead of solely policing unauthorized applications, they can leverage this data to enhance their software offerings. This can lead to increased productivity and efficiency across the organization as employees are more likely to use approved tools that meet their needs.

Embracing Complexity

While shadow IT introduces complexities, understanding it through advanced SMPs enables a more strategic approach. IT departments can adopt frameworks for constant monitoring and agile responses, thus maintaining a balance between security and user preference.

In the next section, we’ll cover tactics and best practices for effectively managing shadow IT within your organization.

Best Practices for Managing Shadow IT

While shadow IT presents unique challenges, adopting a structured approach can turn these challenges into opportunities. Here are tactical and actionable best practices for effectively managing shadow IT:

1. Implement a Software Management Platform (SMP)

To gain full visibility into shadow IT activities, adopting an SMP is crucial. Platforms like Torii offer comprehensive discovery and monitoring capabilities that allow IT departments to identify unauthorized applications in real-time. These platforms also provide tools to automate workflows, ensuring consistent oversight and quick action when an unapproved tool is identified. For more information, check out Torii’s offerings at toriihq.com.

2. Develop a Clear Shadow IT Policy

Craft a policy that clearly defines what constitutes shadow IT and outlines the acceptable use of technology within the organization. This policy should be communicated to all employees, emphasizing the risks associated with unauthorized applications and the importance of adhering to approved software.

3. Foster Open Communication

Encourage employees to openly discuss their technology needs with the IT department. A collaborative environment enables IT to understand the gaps in the current approved tech stack and to address them proactively by incorporating necessary tools. This reduces the dependency on unauthorized applications.

4. Conduct Regular Training Sessions

Hold workshops and training sessions to educate employees about the potential risks of shadow IT, such as data breaches and non-compliance issues. Training sessions should also highlight the benefits of using approved applications and the steps to request new software.

5. Continuously Monitor and Audit

Routine monitoring is essential to keep shadow IT in check. Use the insights from your SMP to conduct regular audits of your IT environment. This will help you stay informed about the real-time usage patterns and quickly identify any emerging shadow IT trends.

6. Enable Self-Service with Guardrails

Allow departments the flexibility to select their tools within a controlled environment. Create a self-service portal where teams can choose from pre-approved applications, which meet security and compliance standards. This approach balances autonomy with oversight.

7. Integrate Shadow IT Insights into IT Strategy

Leverage the data gathered from monitoring shadow IT to inform your IT strategy. Understanding which shadow applications are frequently used can guide the procurement of new tools, ensuring they align with user needs and organizational standards.

8. Establish Incident Response Protocols

Have a clear response plan for dealing with incidents arising from shadow IT. Define roles, responsibilities, and processes to mitigate risks and resolve issues promptly. A well-defined protocol minimizes the impact on the organization and enables swift recovery.

9. Incentivize Compliance

Create incentives for teams and individuals who consistently use approved tools. Recognize and reward behavior that aligns with your IT policies, thus fostering a culture of compliance.

10. Stay Informed on Trends

Keep up-to-date with the latest developments in technology and shadow IT trends. Regularly review reports and insights from your SMP to stay ahead of potential risks and innovate your IT strategy accordingly.

By adopting these best practices, organizations can transform the complexities of shadow IT into strategic advantages, promoting a secure and efficient technology environment. Leveraging platforms like Torii enables IT departments to not only regain control but also to drive better alignment between user needs and organizational goals.

New Torii Pricing 🚀

Find the right plan at the right price.
Get a 14 day free trial, no credit card needed.