TL;DR: How to Manage Shadow IT in 2025
Shadow IT now accounts for 30-40% of enterprise tech usage, presenting a growing challenge to security, compliance, and operational efficiency. Remote work, AI tools, and SaaS sprawl have fueled the rise of unauthorized applications across businesses. This guide explores the current state of shadow IT, why it matters more than ever, how to identify it, and the best tools and strategies to bring it under control.
Josys offers a centralized platform that helps organizations discover, evaluate, and manage shadow IT—ensuring visibility, compliance, and security in a rapidly evolving tech landscape.
Shadow IT in 2025: What You Need to Know
The definition of shadow IT has expanded beyond the occasional rogue app. In 2025, it includes unapproved AI tools, unmanaged cloud environments, and personal devices used for work-related tasks. According to Gartner, as much as 40% of IT spending in large organizations happens without oversight from the IT department. That means most companies have a fragmented and insecure tech environment without realizing it.
At Josys, we see the consequences of this every day. Remote work has made it easier than ever for employees to find and use their own tools. Teams adopt AI applications, manage data in personal cloud accounts, and spin up new SaaS products—all without notifying IT. This creates blind spots that compromise security, increase costs, and make compliance nearly impossible.
What Is Shadow IT?
Shadow IT refers to any technology used within an organization without approval or visibility from the IT department. That includes everything from unauthorized SaaS platforms and AI tools to cloud instances, mobile apps, and connected devices. It can be as simple as a team using a free collaboration tool without informing IT or as complex as entire customer workflows operating in untracked infrastructure.
Shadow IT prevalence varies by industry. Highly regulated sectors like healthcare and finance report lower shadow IT usage, around 25%, while industries like tech and marketing can see rates as high as 60%. Our own research at Josys shows that most IT teams are unaware of at least a third of the tools in use across their companies.
Why Employees Use Shadow IT
Employees turn to unapproved tools not to be malicious, but because they want to move faster. Long procurement cycles, limited access to needed features, and the rise of free or low-cost SaaS tools make it tempting to bypass IT altogether. In many cases, these tools help employees meet deadlines or communicate more effectively—but they come at the cost of organizational visibility and control.
This means shadow IT is often a sign of deeper process problems. If teams had faster ways to request new software or access emerging technologies, many would avoid using unauthorized tools in the first place.
Why Shadow IT Is a Problem
The risks associated with shadow IT are serious. From a security perspective, unmonitored apps create opportunities for data leaks, unauthorized access, and breaches. In 2024 alone, over 20% of reported breaches involved shadow IT. Many of these apps are outdated, lack encryption, or don’t integrate with company-wide identity systems. When employees reuse passwords or upload sensitive data to unsecured tools, organizations are left exposed.
Compliance risks are equally severe. Regulations like GDPR, HIPAA, and others require strict oversight and documentation. You can’t prove compliance if you don’t know which systems are processing your data. Shadow IT creates gaps in logging, retention policies, and audit readiness. One healthcare organization faced over $1 million in penalties after patient data was discovered in unapproved cloud services.
Finally, shadow IT disrupts business continuity. If a key department relies on a tool that goes offline, changes pricing, or is discontinued, operations can grind to a halt. These tools often lack service-level agreements and enterprise-grade reliability, making them a poor foundation for mission-critical workflows.
What to Look for in a Shadow IT Discovery Tool
The best shadow IT tools don’t just scan once and disappear. They provide continuous, automated discovery across your environment and integrate deeply with your existing IT and security stack. A strong platform uses multiple data sources—network traffic, browser plugins, endpoint scans, identity systems, and cloud logs—to uncover unapproved apps.
But visibility alone isn’t enough. Leading tools categorize discovered apps by department, user, data type, and risk level. This context helps IT teams prioritize remediation and understand the business drivers behind tool adoption. Integration is also key. Discovery tools should connect to your SIEM, DLP, IAM, and ticketing systems so findings can trigger real workflows, not just reports.
Josys: Your Shadow IT Control Center
Josys helps IT teams go from reactive to proactive in managing shadow IT. Our platform uncovers unapproved tools and AI apps across your organization, maps usage and data flows, and integrates with your broader IT ecosystem. We make it easy to assess risk, shut down or approve tools, and track remediation over time.
Organizations using Josys typically discover three times more unauthorized tools than they expected. By consolidating duplicate apps and reducing tool sprawl, they often cut SaaS spend by up to 25%. Our platform also helps reduce response times to security issues by over 60% through automation and streamlined workflows.
Instead of juggling multiple discovery tools, dashboards, and compliance systems, Josys offers a unified view of your shadow IT landscape—and the control to do something about it.
How to Implement Shadow IT Discovery the Right Way
Start by setting clear goals. Are you focused on reducing security risk, eliminating redundant software, or preparing for audits? Then roll out discovery in manageable phases—begin with one department or region before scaling organization-wide. Prioritize remediation based on risk and business value. Not all shadow IT is harmful; some tools may be worth approving and integrating.
Transparency is essential. Let teams know what you're doing and why. Avoid framing discovery as a crackdown, and instead position it as a collaboration to improve security and efficiency. Build fast-track approval processes to help teams transition from shadow IT to supported apps. Track progress, measure outcomes, and communicate wins across the organization.
Develop a Company-wide Policy
A formal shadow IT policy gives employees guidance and IT teams a framework for action. Define what constitutes shadow IT, assign ownership across departments, and outline how new tools should be requested, reviewed, and approved. Your policy should also offer safe ways for employees to explore new tech, especially in areas like generative AI.
Make the policy part of onboarding, revisit it annually, and use it as a reference during tool evaluations and audits. The most successful companies treat their shadow IT policy as an evolving resource, not a static rulebook.
Final Thoughts
Shadow IT isn’t going away. But with the right approach, it doesn’t have to be a constant source of stress. IT leaders who shift from reactive monitoring to proactive management—backed by strong tools and clear policies—can turn shadow IT from a liability into a source of innovation.
Josys is purpose-built to help you make that shift. We provide the discovery, insight, and control you need to manage shadow IT in 2025 and beyond.
Ready to take back control? Book a Josys demo today.
