Glossary term
Shadow IT
Subject: Technology, Cyber and Data, IT and Data Governance
Also known as: Unsanctioned IT, Stealth IT
Shadow IT is the use of apps, cloud services, devices or software by employees or teams without the knowledge or approval of the organisation's IT and security functions.
Explanation
It usually begins with good intentions: a team wants to get work done faster than the formal process allows. Examples include file-sharing accounts, personal messaging apps for client talk, free online converters, unapproved AI tools and departmental cloud subscriptions paid on expense claims. The risk is that these tools sit outside security monitoring, contracts, backup and data protection checks. Sensitive data may be stored in places nobody knows about, former staff may keep access, and regulators may later ask for records that cannot be found. Detection uses network and expense analysis, cloud access monitoring and staff surveys. Responses range from blocking to bringing the tool under formal approval. A ban alone often drives use further out of sight, so many organisations improve the approved options and make the request process faster. Spotting the tool is usually easy; the harder question is what need it was filling, and whether the approved option can meet it.
Example
A sales team starts sharing pricing proposals through a free file-transfer site because the company mail system limits attachment size. A cloud access scan finds the traffic. IT blocks the site, but also raises the attachment limit, approves a secure sharing tool, and tells the team why the earlier practice created risk.
Not to be confused with
- End-User Computing (EUC) Risk
- EUC covers tools staff build on approved software; shadow IT covers external or unapproved products adopted without IT knowing.