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Across the UK, organisations are facing a growing challenge: employees are increasingly using technology tools and services outside the visibility and control of their IT teams. This practice, often referred to as Shadow IT, has rapidly become one of the most common and critical blind spots in cybersecurity.
While these tools are often adopted with the best intentions, to boost productivity, enable flexible working, or solve immediate problems. The risks they introduce to security, compliance, and operational control are significant.
The solution begins with visibility. And that’s where a robust asset management strategy becomes essential.
What is Shadow IT, and why does it matter?
Shadow IT refers to any digital technology, applications, software, services, or devices, used within an organisation without the formal knowledge or approval of the IT or security team. This can range from seemingly harmless tools to significant operational systems that are entirely outside of central governance.
Common examples include:
- Unapproved file-sharing platforms such as WeTransfer or Dropbox used instead of company-sanctioned storage.
- Instant messaging or collaboration tools like WhatsApp, Slack or Discord used outside of corporate environments.
- AI-powered tools and chatbots, including generative AI assistants like ChatGPT or image generators used for marketing or content creation without compliance review.
- Unmanaged personal devices (BYOD), such as laptops, smartphones, or tablets that connect to company resources via VPN or unsecured Wi-Fi.
- Unsanctioned SaaS subscriptions, such as analytics dashboards, marketing tools, or CRM software acquired by business units without IT involvement.
These tools are often adopted by employees to solve specific problems, enhance productivity, or work more flexibly, especially in remote and hybrid working environments. However, when they exist outside the organisation’s security controls, they introduce considerable risk.
Recent research shows just how widespread this issue has become:
- By 2027, 75% of employees will acquire, modify or create technology outside IT’s visibility – up from 41% in 2022 according to Gartner.
- According to IBM’s Cost of a Data Breach 2024, 1 in 3 of share of breaches that involved shadow data. Shadow IT can contribute to the creation of shadow data.
- The NCSC also warns that the rise in low-code/no-code development tools, unsanctioned AI apps, and third-party integrations have significantly increased organisations’ exposure to data leakage and compliance breaches.
Why Shadow IT is accelerating in the UK workplace.
There are several reasons Shadow IT has gained momentum across UK organisations:
Hybrid and remote working.
The rise of hybrid working has transformed the way teams collaborate. Research found three-quarters of employees offer hybrid working. Employees now expect seamless access to the tools they need, often across multiple locations and devices. In this environment, self-sourcing technology becomes commonplace.
Consumerisation of IT.
Today, many cloud-based applications can be deployed in minutes without IT support. Free or low-cost tools are readily available and offer intuitive user experiences that appeal to non-technical staff.
Emergence of AI-powered tools.
From generative AI writing assistants to low-code automation platforms, employees are increasingly adopting advanced tools that outpace internal approval processes or security vetting.
Inflexible procurement or support processes.
When official channels are slow, restrictive, or poorly communicated, employees often look for their own solutions. Shadow IT often emerges not from rebellion, but from necessity.
The risks associated with Shadow IT.
While the initial intent behind Shadow IT may be positive, the consequences can be serious. When applications, devices or services are not visible to IT, they cannot be secured. This gap in visibility creates an open door for threats. Key risks include:
Data security vulnerabilities.
Unapproved applications are not subject to the same controls as sanctioned systems. They may lack basic protections such as encryption, secure authentication, or regular security updates.
Regulatory non-compliance.
Organisations operating in the UK must comply with regulations such as the Data Protection Act 2018, GDPR, and the forthcoming Data Protection and Digital Information (DPDI) Bill. Shadow IT makes it difficult to demonstrate accountability, control data flows, or enforce retention policies—potentially exposing organisations to legal and financial penalties.
Operational inefficiencies.
Shadow IT introduces fragmented systems, duplicate processes, and disjointed workflows. This creates data silos and undermines efforts to standardise or optimise digital operations.
Delays in incident response.
In the event of a security incident, a lack of awareness of unauthorised systems delays detection and response efforts. It becomes harder to assess impact, isolate affected systems, or recover effectively.
The Role of Asset Management In Addressing Shadow IT
A comprehensive asset management strategy is the foundation for regaining control. IT Asset Management (ITAM) enables organisations to identify, monitor, and manage all assets, both authorised and unauthorised, across their environment.
By implementing asset discovery tools and maintaining a real-time inventory, organisations can:
- Achieve full visibility of all applications, devices, and services being used across the business.
- Identify unauthorised tools and assess their risk impact.
- Improve governance by aligning asset usage with internal policies and regulatory requirements.
- Enhance operational control by reducing duplication, rationalising tools, and enabling strategic planning.
Asset management doesn’t just help identify Shadow IT—it provides the information needed to act on it.
Practical steps to manage Shadow IT effectively.
Organisations can significantly reduce the risks associated with Shadow IT by adopting a holistic approach that integrates the right combination of technology, process, and organisational culture. It’s not just about deploying better tools, it’s about embedding security awareness into daily operations, streamlining internal procedures to support compliant innovation, and fostering a workplace culture where visibility and collaboration are prioritised. Together, these pillars create the foundations for proactive risk management and long-term resilience.
Key actions include:
Implement automated asset discovery.
Manual inventories are no longer sufficient. Modern discovery tools can continuously scan the environment to detect new applications, endpoints, and cloud services—providing a real-time view of your digital estate.
Maintain a dynamic asset inventory.
Ensure your asset database is kept current, including device type, owner, location, last activity, and security status. This forms the basis for risk assessments, audits, and incident response planning.
Conduct regular audits.
Periodic reviews across departments and locations help ensure compliance and reveal emerging patterns of unauthorised usage.
Educate and engage employees.
Shadow IT is often a symptom of unmet needs. Engage with staff to understand their requirements, raise awareness of the risks, and build trust in approved solutions.
Create flexible technology policies.
Rather than taking a restrictive approach, empower teams with safe, approved alternatives. A streamlined process for technology requests can significantly reduce the incentive to turn to unsanctioned tools.
From Risk to Resilience: Turning Visibility Into Action.
Shadow IT doesn’t need to be a permanent threat. It can be an opportunity to modernise your asset management approach, improve collaboration between IT and business units, and build a digital environment that balances flexibility with control.
By investing in proactive asset discovery and dynamic asset management, organisations can reduce risk, improve compliance, and support a more secure, agile workforce.
Because in today’s complex digital landscape, visibility is not optional, it’s essential.
Secon works in partnership with organisations to assess their current environment, identify risks, and define practical strategies to improve asset management and enhance overall cyber maturity. If you would like to discuss how we can support your organisation in mitigating Shadow IT and building a more resilient, secure infrastructure, please get in touch.