Shadow IT is any software or service your team uses for work without IT’s knowledge. It usually starts with someone trying to solve a problem. They need to share a large file, take notes, or collaborate with a client, so they choose a tool without checking with IT.
Common examples
- Personal Dropbox or Google Drive accounts used for work files
- Free file-transfer sites for sending large documents
- AI chatbots and writing tools used with client or company information
- Messaging apps outside your company’s approved platform
- Browser extensions and “sign in with Microsoft” apps that request access to email or files
Why it matters
- Data leaves your control. Files stored in personal accounts aren’t backed up, protected, or recoverable by your company.
- Offboarding gaps. When someone leaves, their personal accounts (and your data inside them) leave with them.
- Compliance risk. Healthcare, legal, and financial data in unapproved apps can create real regulatory exposure.
- AI tools and confidentiality. Pasting client information into a free AI tool may mean sharing it with a third party.
Shadow IT is a signal, not just a problem. If employees are working around your tools, your tools probably aren’t meeting a real need.
How to get it under control
- Find out what’s in use. Your IT provider can review which third-party apps have been granted access to your Microsoft 365 accounts. Expense reports and a simple team survey reveal the rest.
- Provide approved alternatives. If people need to share large files or use AI, give them a secure, sanctioned way to do it.
- Limit self-service app access. Require admin approval before apps can connect to company email and files.
- Write a short, clear policy (including what’s allowed with AI tools) and explain the why, not just the rules.
The goal isn’t to punish anyone. It’s to make the secure option the easy option.