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SaaS Management: Stop Shadow IT Before It Disrupts Your Business

Written by Marcel Banmann | Sep 3, 2025 1:56:09 PM

Shadow IT often spreads quietly—and quickly becomes a serious risk. Just look at Swedish supermarket chain Coop: A little-known remote maintenance tool used by an external IT provider was compromised. The result? Nearly 800 stores had to shut down because their checkout systems failed. The root cause? A functional but unmanaged tool—with no transparency or protection.

The good news? You can take action. In this article, we’ll show you how to spot, understand, and reduce shadow IT before it spirals out of control.

What is shadow IT—and why is it risky?

Shadow IT refers to software or hardware that’s used without approval from your IT team—often in the form of SaaS tools. Employees sign up for platforms like Trello, Dropbox, or Notion on their own. Usually because official tools take too long to access or don’t meet their needs.

While that may sound like initiative, it can lead to serious problems:

  • Security and compliance risks: Unmanaged tools can put sensitive data at risk. And data breaches are expensive. According to IBM’s Global Cost of a Data Breach Report 2024, the average incident costs USD 4.4 million—rising to USD 10.7 million in industrial settings.
  • Duplicate tools, duplicate costs: When different teams use multiple tools for the same task, effort and spending increase. Gartner estimates that 30–40% of large enterprises’ IT budgets go to shadow IT. These costs aren’t planned or managed—which makes them risky.
  • Lack of visibility: Shadow IT often goes undetected for months, especially when it spreads across departments.

Avoid shadow IT in 4 steps

  1. Automatically identify SaaS tools

Start by creating transparency. A platform like USU SaaS Management shows what tools are really in use—including unauthorized apps, unused licenses, and shared accounts.

Automated analysis helps you spot risks early and stay in control—without time-consuming manual checks.

  1. Train employees—and listen

Shadow IT happens when teams feel ignored. Training helps explain risks and introduce safe alternatives.

Make sure your training is:

  • part of your onboarding process
  • held regularly
  • backed by open communication and active listening

That builds trust—without relying on strict rules.

  1. Offer better tools

If the current setup doesn’t work, teams will look elsewhere. Shadow IT is often a cry for help.

So get business units involved:

  • What features are missing?
  • Are there better options?
  • Can official tools replace unofficial ones?

The right tools turn IT into a partner—not a bottleneck.

  1. Simplify approvals

Slow approval processes push teams toward shadow IT. A better approach:

  • streamline approvals
  • automate workflows
  • offer a self-service portal with pre-approved tools

That way, teams get what they need—quickly and securely.

The takeaways: Get proactive about shadow IT

Shadow IT isn’t new—but it’s growing. Especially in home offices and distributed teams.

Act early and you’ll benefit from:

  • transparency through SaaS management
  • trust through training
  • acceptance through better tools
  • efficiency through clear processes

Turn a risk into an opportunity—for stronger security, leaner operations, and empowered IT.

Want to learn more? Our experts are happy to show you how USU SaaS Management helps you spot and stop shadow IT.