In many enterprises the technology that drives daily work isn’t always the one sanctioned by IT. Teams quietly adopt apps, cloud services or devices outside official controls simply because they need speed and flexibility.
This practice is known as shadow IT creates hidden data flows and gaps in oversight that expose companies to risk. But it also signals genuine productivity demands and unmet needs.
Understanding where and why users go off-map lets organisations detect shadow IT early, manage it thoughtfully and steer it from threat toward opportunity. Effective visibility, clear policies and user-friendly tools are the foundation.
What Is Shadow IT?
Shadow IT is when employees start using their own apps or online services for work without telling the IT team. It usually begins as a simple shortcut to get work done faster. But once data starts living outside approved company systems the organization loses track of where it goes, who has access and how safe it really is.
- Unofficial or Unapproved Apps. Shadow IT means people use their own tools for work even though the company never approved them. They rely on what feels easy and familiar.
- Common Everyday Examples. People move work to personal tools when official ones feel slow. Files go to Google Drive. Tasks shift to private chats. These small choices push sensitive data into places with no control and weaken security.
- Why Shadow IT Happens. People want easy work. When official tools feel slow or hard they switch to faster apps they already know. This shift happens quietly and IT cannot see it.
- Security Risks Behind It. If IT cannot see where the data sits they cannot protect it. Sensitive files land in weak places and stay exposed.
Why Shadow IT Happens
When official systems feel slow or rigid employees reach for apps and services that feel natural to them. These early choices often shape the foundation of shadow IT risks because the workflow shifts outside approved tools without anyone noticing.
- Need for Speed and Smooth Workflows. Most firms run hundreds of cloud apps and a large share are unsanctioned. 270 to 364 SaaS apps is a common range for enterprises and about half of those are not approved.
- Slow or Complex IT Approvals. Many organizations have long approval cycles for new apps or services. Employees might need to submit tickets, wait for review, wait for setup and wait for configuration.
- Better User Experience in External Apps. Some external apps simply feel easier and more intuitive than official enterprise software. Clean interfaces, simple navigation and quick performance encourage repeated use. For example 52 percent of employees admit to downloading apps without IT approval in recent surveys.
- Pressure to Perform Fast. Work environments reward speed outcomes and responsiveness. When deadlines are tight people reach for the fastest route. They rarely stop to think about long term risk at that moment
The Real-World Examples of Shadow IT
Shadow IT usually looks small and ordinary. A quick upload here. A side chat there. A free signup that feels harmless. Work spreads across places the company cannot fully see control or secure.
- Personal Cloud Drives. An employee saves client decks in Google Drive or Dropbox because the official storage feels slow. Links are shared with teammates and sometimes with partners. According to a 2024 article, 83% of IT professionals report that employees store company data on unsanctioned cloud services.
- Messaging Apps and Groups. A team opens a WhatsApp or Telegram group to move faster than email. Tasks get decided in chat. Files get shared. If a phone is lost or a member exits the group the company loses records context and control.
- Personal Email for Work. A manager forwards reports from a work inbox to a personal address so they can search easily at home. A simple password reuse or phishing attempt can expose conversations contracts and private client information.
- Self Serve SaaS Signups. A squad tries a new whiteboard app or a notes app with a free trial. They upload plans, roadmaps and vendor details. Data spreads across unpaid or weakly protected spaces with no formal governance. A report shows that 41% of your employees are using apps you’re not aware of already.
- Unapproved Browser Extensions. Someone installs a handy screenshot or translation extension that captures page content. Another installs a password helper that stores credentials in unknown ways. These extensions can read pages or inject scripts.
- Unmanaged Personal Devices. A salesperson uses a personal laptop for a quick demo. These devices miss company controls like disk encryption, endpoint protection and remote wipe. A lost device or simple malware infection can turn into a major incident overnight.
Risks of Shadow IT on Enterprise Security
Shadow IT feels small at the moment but it quietly shifts data away from protected environments. Security teams cannot see where files move or who can access them which makes early shadow IT detection much harder.
- Loss of Visibility and Control. When employees use unapproved apps the organization loses a clear map of where its information sits. This is one of the most common shadow IT examples because file sharing and quick uploads happen without oversight.
- Weak Security in External Apps. Many external apps are not designed for enterprise level security. They may store data without encryption or rely on basic login protection. If these apps are compromised, attackers gain direct access to sensitive work information.
- Shadow Access and Unknown Users. Files shared in personal drives or chat groups can spread further than intended. Old partners, interns or ex employees may still hold links. One forgotten access link can expose internal information to the wrong hands.
- Identity Compliance and Legal Exposure. Many industries require strict data handling rules. Shadow IT breaks those rules without anyone noticing. If regulators audit the company or if a breach happens fines can be heavy. Under General Data Protection Regulation (GDPR) companies can be fined up to €20 million or 4 % of their global annual turnover, whichever is higher, for serious breaches of data-protection rules.
Detecting Shadow IT Before It Becomes a Breach
Shadow IT grows quietly so it has to be found before it turns into a security event. The goal is not to police people but to understand where work is actually happening. When the organization can see patterns it can guide them instead of fight them.
- Network and Traffic Monitoring. Shadow IT often appears as subtle changes in traffic. When connections rise toward unfamiliar SaaS domains or new cloud services, it may signal teams are testing tools outside the approved stack.
- Practical Signals to Monitor. Sudden spikes in connections to unknown SaaS domains, unusual DNS queries, large file uploads to consumer cloud storage, new OAuth app consents inside Google Workspace, Entra ID, Okta, or similar systems, unmanaged or un-enrolled devices accessing corporate data, these indicators show where work is shifting outside sanctioned environments.
- Shadow Accounts and File Activity Tracking. Many files drift into personal drives when official tools feel slow. This movement is an early sign that teams want faster ways to get things done.
- Team Workflow Conversations. Simple chats with teams reveal what feels heavy in the official setup. These talks help you learn which tools support real work and which tools push people away.
- Discovery and Visibility Tools. CASBs help uncover unsanctioned SaaS usage. Secure Web Gateways provide deeper inspection. DNS and proxy logs reveal hidden traffic patterns, while network telemetry highlights unmanaged devices. Together these tools give IT a full picture of where Shadow IT exists and why it appeared.
How to Manage Shadow IT in a Organization
Managing Shadow IT is not about shutting everything down. It is about understanding why people choose certain apps and then guiding those choices into safe structure. When teams feel heard they share openly.
- Start with Awareness Not Punishment. Shadow IT happens because people are trying to work better. If the response is strict blocking they will hide even more. Begin by understanding how work is flowing. Ask what feels slow or heavy in the official systems.
- Simplify Approved Tools and Workflows. People avoid official systems when they feel it is difficult. If approved apps become easier, faster and cleaner to use, employees naturally shift back to them.
- Create a Clear App Request Path. Make it simple for teams to ask for a new app or service. Remove long waits. Provide quick reviews and clear guidance on what is allowed.
- Regularly Review and Standardize Popular Apps. Look for patterns. If many teams already use the same external app, consider evaluating and approving it officially. This turns something risky into something supported.
- Use Visibility and Control Solutions. Tools like identity governance cloud access controls and device monitoring help map which apps are in use. This is not spying. It is about understanding the real work environment.
Benefits of Shadow IT (When Managed Right)
Shadow IT is not always a problem. When the organization knows where it exists and actively guides it the same behavior that once created risk can become a source of innovation. People naturally choose apps that feel efficient.
- Faster Workflows and Less Friction. When employees use apps that feel natural their work flows faster. They spend less time figuring out menus and waiting for slow approvals.
- Real Insight Into Employee Needs. Shadow IT reveals what official systems lack. Instead of guessing what teams need the organization can see patterns directly from behavior.
- Boost in Innovation and Experimentation. Teams trying new apps are experimenting in real time. They test new ways to collaborate, communicate or store information. When IT supports these experiments instead of blocking them the company gains new ideas.
- Higher Employee Satisfaction and Ownership. When people have a say in the tools they use they feel more engaged and confident. The result is a culture where both productivity and security support each other instead of pushing against each other.
Building a Shadow IT Policy
Shadow IT is not always a problem. When an organization understands the real benefits of shadow it and guides it with supportive oversight the same behavior that once introduced risk can become a driver of fresh ideas and smarter workflows.
- Define What Counts as Shadow IT. Explain which apps, services and devices fall outside approved systems. When people understand what Shadow IT looks like in real life they can notice their own habits.
- Set Clear Approval and Request Paths. Build a simple quick way to request new apps. If the approval path feels fair employees follow the shadow IT policy instead of bypassing it.
- Align the Policy With Real Workflows. Do not write rules based on ideal scenarios. Use the way teams already work as your starting point. Understand what feels slow. A policy works only when it respects actual day to day patterns.
- Communicate in Plain Language. Avoid heavy technical terms. The policy should be readable for everyone. Simple language builds transparency, trust and consistency.
- Review and Update Regularly. Tools change. Work patterns change. A policy written once and never updated becomes outdated fast. Adjust based on feedback and real usage.
How IAM Solutions Help Prevent Shadow IT
Identity and Access Management (IAM) helps organizations see which employees are using which apps and what access they have. Instead of trying to monitor every new tool people use, IAM tracks the identity behind each action. When everything is tied to a single user identity it becomes much easier to detect, manage and secure Shadow IT.
- Central Control of User Identity. IAM solution gives every employee a single identity that works across approved apps. If someone tries to use a new app the system can detect it because access does not match the known identity map.
- Secure Access Without Friction. IAM supports single sign on and passwordless access. This reduces login frustration and makes official apps easier to use. When the approved tools feel smooth and fast employees naturally prefer them.
- Multi Factor Authentication Protection. IAM allows strong authentication without making it complicated. Even if employees use new apps IAM ensures no one can access data without the right identity checks.
- Automatic Removal of Old Access. When someone changes roles or leaves the company IAM can remove access everywhere at once. In Shadow IT environments access often stays open unnoticed. IAM prevents this.
- Visibility Into App Usage Patterns. IAM shows activity for apps that use one central identity like SSO and this helps IT see which approved tools stay active. But IAM cannot see personal accounts that never touch SSO like a personal Google Drive. For those hidden apps you still need network checks, DNS checks and CASB discovery so you get the full picture.
Turning Shadow IT from Threat to Opportunity
Shadow IT often begins as simple shortcuts teams use to work faster. When handled thoughtfully these shortcuts can show what people really need to perform well.
Infisign supports this shift. It does not just block Shadow IT. It guides it.
Infisign provides a unified identity layer through its IAM Suite and UniFed systems so organizations can keep flexibility while still maintaining security and clarity. Shadow IT becomes something the company can learn from rather than something it fears.
How Infisign Makes That Shift Happen
Passwordless Authentication
Infisign passwordless authentication removes traditional passwords and replaces them with secure biometric or device-based access. In the context of Shadow IT this solves a major root problem: employees often switch to unapproved apps because official tools feel slow or frustrating to log into.
When sign-ins become fast, effortless and secure users naturally stick to approved systems. This reduces silent workarounds and keeps sensitive data inside monitored environments. Smooth access means fewer shortcuts and fewer hidden tools floating outside IT visibility.
Decentralised Identity
Decentralised identity gives every user a verified digital identity that relies on cryptographic proofs instead of stored credentials. For Shadow IT this creates a stable identity layer that follows the user across all authorized applications. IT teams gain clear visibility into who is accessing what while employees enjoy a flexible and modern login experience.
With stronger identity control the chances of employees creating unmanaged accounts or using personal apps drop sharply. It keeps access secure, predictable and aligned with enterprise policies.
Smart Multi Factor Authentication
Infisign’s smart MFA gives strong identity verification in a way that directly reduces Shadow IT. Employees usually switch to unapproved tools when official apps feel slow or difficult to access.
Smart MFA solves this by keeping everyday sign ins smooth and only increasing security checks when something looks unusual such as an untrusted device, an unknown location or strange behaviour.
This balance lets users move fast inside approved systems and gives IT clearer visibility into suspicious activity. With easier authentication and stronger oversight the chances of employees using external apps quietly drop and Shadow IT becomes far easier to detect and control.
Supported Methods That Reduce Shadow IT Behaviour
- Face or fingerprint biometrics on trusted devices for instant and secure access.
- FIDO2 and WebAuthn hardware keys for phishing resistant authentication.
- Time based one time codes from authenticator apps.
- Push approval prompts on familiar devices for quick confirmation.
- Email and SMS codes as controlled backup options.
- NAG and MPWA support that brings biometric login to older and on premises systems so employees do not bypass them with outside tools.
Rich Integration and Automation Support
Infisign connects with more than 6000+ applications instantly and new tools join fast through SSO. It offers full APIs and SDKs so every app fits into the setup without any heavy change in the tech stack. With fast SSO onboarding, teams no longer need workarounds or personal accounts.
Integration stays smooth so no one depends on personal tools or outside shortcuts. Any new service enters the approved space with very little effort and no extra build work. This keeps the whole system simple and makes every app part of one trusted flow.
Audit Governance and Access Review
Infisign automates user and access management so daily identity tasks do not rely on manual steps. It updates access instantly when roles change and removes permissions the moment someone leaves or moves to a new position. This keeps every account accurate and aligned with security standards. By handling provisioning, deprovisioning and other lifecycle actions automatically the system prevents leftover access and reduces the risks caused by human error.
Get full control over Shadow IT with seamless identity security. See how Infisign simplifies access and boosts visibility across your enterprise. Book your demo today!
FAQs
What is an example of shadow IT?
Example is when an employee stores work files on personal Google Drive instead of the company storage. It feels faster at the moment but the data sits outside the secure system.
What does shadow IT do?
Shadow IT allows employees to work faster using apps they prefer but it also moves information into places the organization cannot see or control. It increases convenience while quietly increasing risk.
Is shadow IT good or bad?
Shadow IT is neither fully good nor fully bad. It shows where official tools fall short. When unmanaged it is risky. When guided properly it can lead to better tools and smoother work.
