How Josys Discovers Shadow IT

Are your employees using SaaS apps without IT approval? Employees need a tool to complete a task, so they sign up for a SaaS app without IT approval. Another team finds software that improves collaboration but doesn’t check if it meets security standards. Over time, the company accumulates unapproved and unmanaged applications.

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This is Shadow IT—the use of unauthorized software in an organization. It leads to security risks, compliance violations, and wasted IT spending. Sensitive data may be stored in unsecured locations, and multiple teams might pay for the same or redundant apps. Without visibility, IT teams struggle to manage risks.

Josys helps IT teams identify, manage, and reduce Shadow IT by providing a clear view of all SaaS applications.

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Why IT Struggles to Identify Shadow IT

Shadow IT grows because employees can access SaaS tools without IT approval. Without proper monitoring, IT teams don’t know what software is in use, where data is stored, or who has access.

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Former employees and contractors sometimes keep access to company apps after leaving. This unauthorized use creates security risks. If IT isn’t tracking access, these accounts remain active longer than they should.

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Shadow IT also increases costs. Different teams may purchase separate subscriptions for the same app, leading to unnecessary expenses. IT spending becomes inefficient without oversight, and software sprawl gets out of control.

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How Josys Detects Shadow IT Across Your Organization

Josys connects with existing IT systems to detect both unauthorized apps and unapproved users accessing company tools. It integrates with Google Workspace, Microsoft Entra ID (Azure AD), Okta, and the Josys Browser Extension to discover unknown apps and users accessing your SaaS stack, providing a complete picture of SaaS. 

Discovery Through Multiple Sources

Josys uses different sources to detect unauthorized applications. The Josys Browser Extension tracks app usage in Chrome and Edge by monitoring logins and browsing activity. Google Workspace and Microsoft Entra ID analyze audit logs to identify apps employees access through corporate accounts. Okta helps IT teams track login activity and spot users signing into apps outside IT’s control.

By pulling data from these sources, Josys provides IT teams with a real-time view of all apps being used, whether approved or not.

Understanding Discovered Apps and Users

Josys organizes detected apps and users in a dashboard for easy management.

The Discovered Apps section lists all SaaS tools that have been discovered, but are not managed by your IT team  today. The dashboard shows risk levels, compliance certificates, and the users accessing these tools. This allows IT to quickly assess whether an app should be monitored, approved, or removed.

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The User Profiles section is a list of your integrated IdP users. Integrate Microsoft Azure AD or Google Workspace for a list of known users. Josys merges this user information with apps they have access to, whether IT provisioned them or not. IT teams can act on this information to restrict unauthorized access and enforce company policies.

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The Managed Apps section tracks officially approved software, showing the number of accounts, costs, and licenses. This helps IT teams ensure they are managing licenses efficiently and not overpaying for underused apps.

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Managing Shadow IT with Risk Intelligence

Not all SaaS applications carry the same risks. Some tools are harmless, while others pose security threats. Josys integrates with Netskope to analyze each discovered app and assign it a risk score.

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High-risk applications are flagged so IT teams can act quickly. Security teams can define policies to restrict access, enforce security controls, or require approval for certain tools. This ensures IT doesn’t just identify Shadow IT but also prevents security threats before they cause harm.

Taking Action: How IT Teams Can Regain Control

Once Shadow IT is identified, IT teams must act to secure the organization, enforce compliance, and reduce costs. Josys makes managing unauthorized users and SaaS applications easy from a single platform.

Handling Unauthorized Shadow Users

Josys helps IT teams bring shadow users under proper governance. IT can convert unauthorized users into managed accounts to ensure they follow company policies. For former employees or contractors with lingering access, IT can revoke their credentials immediately to prevent security risks.

Performing Access Review Surveys 

When a new app or shadow user is discovered, IT can send a survey to users to better understand the needs of the user. Maybe they signed up for an app and forgot about it, which could easily be deleted, or maybe it’s a critical app that IT needs to begin actively managing and securing. Doing period SaaS audits with feedback surveys makes shadow IT clean up a breeze.  

Enforcing IT Policies on SaaS Applications

IT teams can use Josys to approve essential applications, restrict or block high-risk apps, and monitor new SaaS activity. This prevents risky Shadow IT from taking root while ensuring employees have access to secure and compliant tools.

By taking these steps, organizations can reduce security risks, optimize IT spending, and enforce policies without disrupting business operations.

Conclusion: Not all Shadow IT is Bad 

Shadow IT can put company data, security, and budgets at risk. Without visibility, IT teams can’t protect sensitive information or enforce policies. On the flip side, employees need access to the tools they need to stay productive. IT needs to proactively monitor the SaaS environment, partner with users, and  understand their needs before completely shutting down access. 

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Josys makes detecting unauthorized apps and managing access easy. With complete oversight, IT teams can take control, ensure compliance, and optimize software usage.

Start securing your SaaS environment today. Take a tour of Josys’ Shadow IT Discovery dashboard.

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