What are Some Shadow IT Customer Challenges?

Shadow IT is a growing challenge that keeps IT and Security leaders awake at night. As employees increasingly turn to unauthorized apps and services to get their work done faster, organizations are left grappling with a range of issues: data leaks, compliance breaches, and an overall lack of visibility. Shadow IT in cybersecurity poses a serious threat, complicating governance efforts and creating a maze of unmanaged risks. But what exactly are the challenges customers face with Shadow IT, and how can you govern it without stifling innovation? In this post, we’ll break down why Shadow IT is problematic, the specific hurdles organizations encounter, and actionable steps to get it under control.

What are Some Shadow IT Customer Challenges?

Customers navigating Shadow IT face several pressing challenges that can jeopardize both security and operational efficiency.

Lack of Visibility

One of the most significant issues is the lack of visibility and control over unauthorized apps and services used within the organization. Without proper oversight, sensitive data can be unknowingly exposed to unsecured environments, making Shadow IT in cybersecurity a critical concern (69% of employees deliberately ignore cybersecurity guidelines). This hidden risk means organizations are often blind to potential vulnerabilities, unable to protect their data from breaches or ensure compliance with industry regulations.

Fragmented Resources

Another challenge is the fragmentation of IT resources. When employees use unauthorized tools, it creates a patchwork of disparate systems and applications that are difficult to integrate or support. This not only increases the risk of security incidents but also leads to inefficiencies and increased costs associated with managing multiple tools and subscriptions. Effective Shadow IT management requires identifying these rogue applications and consolidating them into a more cohesive, secure framework.

Balancing Security and Productivity

Finally, customers struggle with balancing security and user productivity. Employees often turn to Shadow IT because it offers faster, more efficient solutions than those provided by their official IT department. The challenge for IT and Security leaders is finding ways to accommodate these needs without compromising security. This involves developing strategies to better understand user requirements, offering flexible, secure alternatives, and implementing policies that allow for both innovation and protection. By tackling these challenges head-on, organizations can transform Shadow IT from a problem into an opportunity for smarter, safer operations.

How to Govern Shadow IT?

Governing Shadow IT requires a balanced approach that combines visibility, control, and collaboration to ensure security without stifling innovation.

1. The first step is to gain a clear picture of what’s happening under the radar. Begin by identifying Shadow IT examples already in use—such as unauthorized file-sharing platforms, collaboration tools, or cloud services that employees have adopted without official approval. Using Shadow IT tools like Cloud Access Security Brokers (CASBs) or network monitoring solutions can help detect these applications and provide detailed insights into user behavior and data flows.
2. Once you know what Shadow IT exists in your organization, the next step is to develop a governance framework that addresses the root causes. This involves creating clear policies around acceptable use, defining which tools and services are permitted, and setting guidelines for evaluating new software requests. Encourage open communication between IT and end-users to understand why they are turning to unsanctioned solutions. Often, employees use Shadow IT because official tools are too restrictive or fail to meet their needs, so gathering this feedback is crucial.
3. Finally, provide secure, approved alternatives that meet user needs while maintaining cybersecurity standards. Introduce vetted tools that offer the same functionality as popular rogue apps but are managed within your security framework. Regular training and awareness campaigns can also help employees understand the risks associated with Shadow IT and promote compliance with established policies. With these strategies, IT and Security leaders can better govern Shadow IT and turn a potential threat into a managed asset

Why is Shadow IT Problematic?

Shadow IT is problematic because it introduces significant risks to an organization’s security, compliance, and operational efficiency. When employees use unauthorized applications or services—what we call Shadow IT software—they effectively bypass the established IT controls designed to protect sensitive data and maintain regulatory compliance. These Shadow IT risks include exposing the organization to potential data breaches, malware infections, and other cyber threats that can go undetected until it’s too late. With no visibility into these rogue applications, IT and Security leaders can’t manage or mitigate these threats effectively.

Another issue with Shadow IT is the lack of data governance. When employees store information on unauthorized cloud services or use unapproved communication platforms, it becomes almost impossible to enforce data protection policies or ensure compliance with standards like GDPR, HIPAA, or PCI DSS. Sensitive data might end up in unsecured locations, shared with unauthorized users, or even lost altogether. This creates not only a cybersecurity risk but also a compliance nightmare, with potential fines and reputational damage.

Shadow IT software also contributes to inefficiencies and increased costs. Unapproved tools can lead to duplication of efforts, redundant subscriptions, and integration challenges, making the IT environment more complex and expensive to manage. Moreover, Shadow IT disrupts standard IT processes, creating confusion and reducing overall productivity. Ultimately, managing Shadow IT risks requires a proactive strategy that combines visibility, education, and governance to keep the organization secure while empowering employees with the right tools to get their jobs done effectively.

________________________

Shadow IT might seem like a small inconvenience at first, but it can quickly spiral into a major problem that impacts security, compliance, and operational efficiency. By understanding the risks and challenges associated with Shadow IT, IT and Security leaders can develop a governance strategy that balances innovation with control. With the right mix of policies, tools, and communication, you can turn the tide on Shadow IT, making your organization both agile and secure. Ready to take charge of Shadow IT and protect your organization from hidden threats? Book a Lumos demo today and discover how we can help you gain full visibility and control over your digital ecosystem.