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What Is Shadow IT? (+ How to Prevent It)

By Tara Porter
Updated March 4, 2025
Shadow IT

There’s a quiet rebellion happening in offices all over the world—maybe even in yours. A team member discovers a sleek project management tool online, so they sign up without telling IT. A manager sends out Google Forms because the company’s approved survey platform is clunky. A marketing group uploads leads to a “quick fix” cloud database because the official CRM is too slow.

This rebellion has a name that sounds mysterious and a bit intimidating: Shadow IT.

Shadow IT isn’t a grand conspiracy. More often, it’s simply employees trying to move faster and get their work done. They’re not aiming to undermine the business; they’re just tired of waiting on outdated software or endless approval steps.

For many CIOs, IT directors, and compliance officers, though, “Shadow IT” triggers anxiety. When technology shows up outside of official channels, it can lead to chaos, confusion, security breaches, compliance headaches, and fractured data.

So, let’s explore Shadow IT—what it is, why it happens, and what we can learn from it.

Why Employees Use Shadow Solutions

In many companies, official processes move slowly. Installing a new update can require filling out forms, waiting for approvals, and attending endless meetings. Meanwhile, online sign-up for a new tool might take just seconds. It’s no wonder employees use shadow alternatives.

According to Netskope’s 2022 State of Cloud Security Report, organizations typically use an average of 1,835 cloud apps, with roughly 80% of them unsanctioned by IT.

Shadow IT tells us something crucial: when people circumvent policies, they’re signaling that existing technology is missing features or lagging behind. Listening to these signals can lead to innovation. But ignoring them can result in data loss, security risks shadow, and compliance issues down the road.

The Benefits of Shadow

Yes, there are benefits of shadow technology. Even though it bypasses official channels, it can reveal what employees actually need to do their jobs better.

Speed and Productivity

Shadow IT often offers a faster, more intuitive way to work. By embracing new tools, teams can avoid the red tape of traditional information technology requests and get results sooner.

Innovation and Creativity

When people experiment with cloud based services, they might discover next-level solutions. This experimentation can spark new ideas the company hadn’t considered before.

Immediate Problem-Solving

If your official system struggles with file sharing, employees will likely find a workaround. In many cases, these unapproved systems can patch an urgent need until the company’s approved solution catches up.

When used responsibly, these tools can spur progress. The key is not letting them run unchecked. Because for every benefit, there’s a matching risk.

The Risks of Shadow IT

While shadow IT can boost productivity, the risks of shadow are just as notable. These risks include consequences for security, compliance, and data integrity.

Lack of Visibility and Control

If no one in the information technology department knows about a tool, they can’t monitor it. This lack of visibility and control means data security protocols might be overlooked. It also means no one is tracking version updates or ensuring the vendor meets security measure requirements.

Data Loss and Security Gaps

Hosting sensitive data on personal devices or random cloud based applications is risky. A stolen laptop, a weak password, or a poorly secured app can lead to massive data loss. When employees use shadow tools without oversight, they might be unaware of the risk of data breaches.

Compliance Issues

Each region, industry, or discipline has specific data protection regulation guidelines. Shadow IT can violate these requirements because the unapproved tool might store information in places that aren’t compliant. If discovered, the organization could face heavy fines and reputational damage.

Expanding Attack Surface

Every new app or service introduces new vulnerabilities. The organization’s official security measure only covers known tools. The more shadow platforms exist, the bigger the attack surface becomes, making it easier for cybercriminals to exploit blind spots.

How to Prevent Shadow IT

Educate Employees

Most people don’t realize the security risks shadow apps pose. They think they’re just being efficient. If you share stories of real-life data loss or risk of data breaches from unvetted tools, you’ll make a bigger impact than if you only recite policy text.

Streamline Approvals

One big reason employees use shadow solutions is that official processes are too slow or cumbersome. If you create a faster, simpler way to request new cloud based services, you reduce the temptation to go rogue.

Introduce Pilot Programs

Instead of banning every outside tool, give employees a controlled environment where they can test new solutions with dummy data. If the tool proves valuable and meets the required security measure, adopt it.

Keep an App Inventory

Modern information technology teams can maintain a portal listing approved software. Whenever someone requests a new option, they can reference what’s already available—or add to the inventory if it’s a strong candidate.

Implement Automatic Checks

Certain security tools can scan for unusual data flows or suspicious logins. By monitoring network activity, you gain visibility and control over potential shadow usage.

VisualSP: An Easier Way to Prevent Shadow IT

Even the best policies fall short if employees don’t have real-time support and clear feedback on which tools are approved—and which ones are off-limits. That’s where VisualSP can make a difference:

Instant Alerts

VisualSP’s browser tab can turn red or green to tell users immediately if they’re on an approved or unapproved page. This simple cue helps steer people away from risky or unknown platforms before they accidentally store sensitive data there.

In-App Feedback

Need quick insights into what’s working (or not)? VisualSP lets you collect user feedback right inside the app. Now you can see why people might be struggling—and where they’re turning to shadow solutions.

Lists of Approved Apps

With VisualSP, employees get easy access to a list of apps that have been vetted and approved by your IT and compliance teams. No more guesswork. If a user wonders, “Is this tool okay to use?” they can check on the spot.

Guidance on Approved Tools

Even the best apps can feel daunting at first. VisualSP provides in-app guidance, walkthroughs, and tips. Users get step-by-step instructions on how to navigate approved software, so they’re less tempted to try something else.

By putting guardrails right where people work—inside the browser and the apps—they see the rules, guidance, and resources in real time. It’s not about punishing employees for curiosity. It’s about giving them the information they need, at the exact moment they need it, to stay within safe and compliant boundaries.

Want to see VisualSP in action? Get started free today.

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