Why Do Employees Use Shadow IT?

Let’s face it—Shadow IT in cybersecurity is the office party crasher you didn’t invite, but who somehow always finds its way in. Employees use Shadow IT for a simple reason: they want things done yesterday. When official channels are slow, they turn to the next best (or just the next available) thing, often without thinking about the security baggage it brings. Sure, it makes life easier in the short term, but it’s a trade-off that can cost organizations big time—think data breaches, compliance nightmares, and a whole lot of tech debt. Seventy-six percent of small and medium-sized businesses report that the presence of shadow IT poses a moderate to severe cybersecurity threat to their organization. Yet, there's a silver lining. Sometimes, Shadow IT fills a gap your official solutions simply aren’t addressing. When users find their tools clunky, their processes tedious, or their needs unmet, they go rogue. And while that may be a headache for IT and Security leaders, it’s also a clue that something important is missing from your current tech stack.

Why Do Employees Use Shadow IT?

At Lumos, we know that employees use Shadow IT because they’re often stuck between a rock and a hard place: they need to get their work done quickly, but the official tools provided are clunky, limited, or just plain outdated. When the IT department’s response time lags behind business needs, employees turn to whatever software or service will solve their problems fastest—even if it means sidestepping security protocols. According to a recent Shadow IT report, over half of the employees admit they use unauthorized apps simply because they offer a better user experience or functionality than the tools their companies provide.

But it’s not just about convenience. Agility is key, and workers are always looking for ways to streamline tasks, improve collaboration, and boost productivity. If the sanctioned tools don’t deliver, employees will seek alternatives that do—whether that’s a file-sharing app, a project management tool, or a new communication platform. Unfortunately, these workarounds often come at a cost. Employees may not fully understand the risks associated with unvetted solutions, which can lead to serious security vulnerabilities.

The Shadow IT report highlights a critical takeaway: employees aren't out to sabotage security; they’re just trying to do their jobs efficiently. For IT and Security leaders, this is a call to action—understand the gaps in your current tools and find ways to bridge them. A better user experience and faster response to business needs can keep your employees on the right side of the cybersecurity fence.

What are the Drawbacks of Shadow IT?

Shadow IT might feel like a quick fix to employees, but it brings a host of headaches that IT and Security leaders can’t afford to ignore.

The most glaring drawback? The risk to your organization’s security posture. When employees use unauthorized apps or services, they bypass the layers of protection you’ve painstakingly put in place. This opens the door to data breaches, malware, and a range of other cyber threats. According to recent findings, over 80% of employees admit to using unauthorized tools, many of which have known vulnerabilities or lack encryption altogether.

Another major drawback is the lack of visibility and control. Without a clear view of the apps and services employees are using, it becomes nearly impossible to enforce compliance, maintain proper data governance, or even identify potential risks. This is where a CASB (Cloud Access Security Broker) for shadow IT comes into play. A CASB can help monitor and manage the use of cloud services across your organization, providing critical insight into what’s happening beyond your IT department’s radar.

Moreover, Shadow IT can lead to significant financial costs. From redundant licensing fees to unexpected cloud storage expenses, the hidden price of these rogue apps can add up quickly. And then there’s the tech debt—every time an employee adopts a new tool, it creates more integration challenges down the line. The bottom line? While Shadow IT might offer short-term convenience, it can cause long-term damage that affects everything from your security framework to your bottom line.

What is a Good Reason for a Shadow IT Team to Arise Within an Organization?

While Shadow IT is often seen as the rebellious teenager of the tech world, there are times when its rise within an organization is actually a sign of something positive. A good reason for a Shadow IT team to emerge is when there is a critical need for innovation and agility that the official IT department simply can't meet fast enough. In dynamic environments where business needs evolve rapidly, traditional IT processes can be too slow, bogged down by bureaucracy, or hamstrung by limited resources. When this happens, employees often take the initiative to form their own Shadow IT teams, using tools and platforms that better support their immediate goals.

Shadow IT in cybersecurity can also serve as a wake-up call for the organization. When a Shadow IT team arises, it usually signals a gap in the current tech stack or a failure in addressing the needs of the workforce. These teams often pinpoint inefficiencies or find creative solutions to specific challenges that the official IT department may overlook. For IT and Security leaders, this is an opportunity to listen, learn, and adapt.

Rather than viewing Shadow IT solely as a threat, leaders can see it as a pulse check—a way to gauge what tools and services employees find truly valuable. This feedback can help shape a more responsive, flexible IT strategy that aligns better with both security protocols and business goals, ultimately creating a stronger, more resilient organization.

Why Do Users Typically Choose Shadow IT Solutions?

Users typically choose Shadow IT solutions because they’re looking for efficiency, flexibility, and speed—qualities that often feel lacking in the official tools provided by their organization. When employees face cumbersome approval processes, outdated software, or limited functionality, they naturally seek out alternatives that better fit their immediate needs. For them, it’s not about breaking the rules; it’s about getting the job done faster and more effectively. This often means turning to the latest cloud apps, file-sharing platforms, or communication tools that aren’t officially sanctioned but are easier to use and more tailored to their workflows.

However, the convenience of Shadow IT comes with significant risks. When employees bypass established IT channels, they expose the organization to security threats, data breaches, and compliance violations. This is why understanding the underlying reasons for Shadow IT’s appeal is essential for IT and Security leaders. To tackle this challenge, it’s crucial to explore effective ways to manage Shadow IT in an organization. Start by fostering a culture of communication and transparency—make it easy for employees to request new tools or services, and be responsive to their needs.

Additionally, implementing solutions like Cloud Access Security Brokers (CASBs) can help monitor and control the use of unauthorized apps while still allowing flexibility. The goal isn’t to stifle innovation but to create an environment where users feel empowered to choose the best tools for their jobs—without compromising the organization’s security posture. By balancing security with usability, you can reduce the appeal of Shadow IT while keeping your organization safe and agile.

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Shadow IT may be the wildcard in your organization’s tech deck, but it doesn’t have to be a losing hand. By understanding why employees turn to unauthorized tools and recognizing both the risks and potential benefits, IT and Security leaders can turn this challenge into an opportunity for growth. The key lies in bridging the gap between what users want and what’s officially provided, creating a balance that keeps your team productive while safeguarding your organization’s cybersecurity. If you're ready to get a handle on Shadow IT and gain full visibility into your tech landscape, it’s time to take the next step. Book a Lumos demo today and see how our solution can help you manage Shadow IT effectively, empowering your workforce without compromising security.