It started as a minor frustration. Raj, a project manager at a medium-sized company, was fed up with waiting on IT approval just to install a tool that could make his work flow easier. The official business collaboration software was clumsy, slow, and didn’t really suit the needs of his team. He needed something more efficient.
Raj then found a shortcut. He downloaded a clean, cloud-based app that promised efficiency in just a few clicks. His team loved it. No tickets, no waits- just flawless team collaboration.
But what Raj did not know was that his “quick fix” was one of a rising trend: Shadow IT- the utilization of unauthorized software, apps, or hardware by employees without the IT department’s knowledge or consent.
The usage of Shadow IT usually begins with the best of intentions (such as increasing productivity or enhancing team collaboration), but it has the potential to bring in serious security threats, compliance problems, and data breaches. With remote work on the rise, this technology is simply growing, with 65% of remote employees resorting to the use of non approved tools.
So how can organizations manage this challenge without stifling innovation? In this article, we’ll dive into the rise of Shadow IT, its risks, and how IT teams can strike a balance between security and efficiency.
Causes of Shadow IT
According to The Economic Times, in the last two years, 11 percent of companies worldwide have suffered cyber incidents due to the use of shadow IT by employees.
This is because most online business collaboration software is not satisfactory, with 61% of employees being unhappy with these tools. As a result, a shocking 91% of teams feel pressured to prioritize business operations over security, and end up using unapproved software.
Slow IT response times also make it hard for employees to solve IT issues on their own, and they are forced to find alternatives.
Effects of Shadow IT
While Shadow IT may seem convenient, it is extremely harmful for businesses in the long run. A study by Kaspersky covered by The Economic Times, revealed that the IT industry suffered 16% of cyber incidents due to the unauthorised use of shadow IT. The same study revealed that in India, 89% of companies suffered cyber incidents, out of which 20% were caused by Shadow IT.
In the year 2023, hackers compromised the company Okta’s customer support system and stole data from all of the cybersecurity firm’s customer support users. The cause was an employee using a personal Google account on a company-owned device. This unintentionally allowed threat actors to gain unauthorised access to Okta’s customer support system.
This example shows exactly how Shadow IT bypasses IT oversight, posing security risks and complicates troubleshooting with unapproved, non-integrated tools. It increases costs through redundant spending on applications and unused company resources.
It also leads to fragmented IT decisions, with different teams choosing tools based on varying priorities like cost, speed, and ease of use. This creates incompatibility, ultimately harming collaboration in the workplace instead of enhancing it.
The Solution
NexAEI Colab helps eliminate the need for Shadow IT by providing a cost-effective, secure, and customizable communication platform designed for Indian businesses.
Instead of employees relying on expensive, unapproved tools, Colab offers an affordable, IT-approved alternative that ensures compliance and security. With built-in messaging, secure file storage and Administrative controls, it streamlines collaboration while reducing tool fragmentation and security risks.
Its flexible design also allows it to be tailored to any business, ensuring seamless integration into existing workflows without unnecessary costs.
Don’t fall prey to tools designed to harm your business. Instead, choose NexAEI Colab today- an Indian tool for Indian businesses.
Sources:
- https://www.cisoplatform.com/profiles/blogs/gartner-predicts-30-of-breaches-due-to-shadow-it-by-2020
