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When was the last time you audited all the apps your employees use for work?
If you’re struggling to pinpoint the answer, you’re not alone.
Shadow IT is the use of unauthorized apps or devices for work. It has become a hidden problem for many companies today. Almost 88% of IT admins are worried about apps and devices not managed by formal IT oversight, as stated in JumpCloud’s latest SME IT Trends Data Report.
And for good reason.
Gartner predicts that by 2027, 75% of employees will use technology outside of IT oversight, creating compounding risks for security and budget management. Employees often use unsanctioned tools to work more efficiently. However, this can pose serious risks for organizations.
Shadow IT increases risks and compliance issues. It also leads to broken systems and rising costs. Managing shadow IT is no longer optional—it’s an absolute necessity.
The Rising Challenges of Shadow IT
Shadow IT presents three distinct hurdles for IT leadership:
1. Lack of Visibility
A top frustration for IT teams is not knowing what they don’t know.
A staggering 38% of IT admins cite their inability to discover all employee applications as a critical roadblock. This lack of visibility makes it nearly impossible to assess risk, enforce security policies, or optimize SaaS spending.
Real-world example? AI tools like ChatGPT or Midjourney are often adopted without IT approval. According to a recent presentation by Director of Product Management Serhat Can at the 2025 JumpCloudLand virtual event, tools like these may enhance productivity, but 11% of the data employees paste into ChatGPT is confidential, increasing the risk of sensitive data leakage.
2. Balancing Employee Needs with Security
Employees turn to shadow IT because it solves their immediate work challenges.
They don’t view unapproved file-sharing apps or graphic design platforms as risks. Instead, they see these tools as ways to get work done faster. The delay isn’t intentional, but it frustrates employees. They often choose convenience instead of following the rules.
The challenge for IT teams? Simply blocking applications doesn’t work.
Employees will find creative workarounds if enterprise-approved tools hinder their productivity. Instead, IT must act as an enabler, providing sanctioned tools that are secure, compliant, and equally user-friendly.
3. Keeping Up with the SaaS Explosion
The Software-as-a-Service (SaaS) landscape is expanding faster than organizations can keep up.
On average, 29% of IT admins feel they lack sufficient partnership and communication with business units regarding tool adoption. AI apps are evolving quickly. Teams often struggle to evaluate and secure new tools before employees start using them.
Employees will just need to do their job, and they need these tools. But you’re slow to purchase these tools… They will find creative ways no matter what you do.
Serhat Can, co-founder and Director of Product Management, JumpCloud
Solutions to Regain Control of Shadow IT
Managing shadow IT isn’t about saying “no”—it’s about finding the right solutions to empower employees and secure infrastructure.
Below are key strategies to take back control:
1. Gain Better Visibility of Employee Apps
Visibility is the foundation of shadow IT control.
Tools like browser extensions and task connectors offer deep insights into the SaaS ecosystem employees use. A browser is called the “gateway to work.” Seeing what happens at the browser level helps IT teams spot unapproved apps right away.
JumpCloud’s SaaS Management, for instance, discovers unauthorized tools before they create vulnerabilities.
2. Educate Employees
Employees don’t often understand the risks tied to shadow IT.
Education campaigns can help close this gap. They show the security threats from unsanctioned tools. When you give clear options and share their benefits, employees are more likely to pick IT-approved solutions. Benefits like compliance and data protection matter a lot to them.
3. Offer Viable Alternatives
If your employees are using unsanctioned tools, ask yourself why.
Are your current tools overly complex?
Do they fail to meet workflow needs?
Engage employees in selecting enterprise-grade alternatives that genuinely address their pain points. Providing the right solutions proactively reduces reliance on shadow IT.
4. Automate SaaS Management with Centralized Tools
IT teams shouldn’t have to juggle disparate tools to manage devices, identities, and applications.
JumpCloud and similar platforms simplify SaaS management. They help you quickly find and monitor unauthorized apps. The latest JumpCloud SME IT Trends report shows that shadow IT mainly stems from two issues: lack of visibility and difficulty in identifying all applications employees use. SaaS management and asset tracking tools help control costs and reduce compliance risks.
5. Get Ahead of the Curve with AI-Driven Insights
AI is revolutionizing various business functions—and SaaS management is no exception.
Predictive insights help IT teams spot shadow IT trends. They can also suggest integrations that match employee needs. This allows teams to take a proactive rather than reactive approach to app management.
The ROI of Managing Shadow IT
Beyond enhancing security, managing shadow IT delivers tangible return on investment (ROI):
- Cost savings: Reducing untracked app subscriptions prevents duplicate or unnecessary spending. By consolidating SaaS platforms, organizations can cut down on licensing costs.
- Improved compliance: Adhering to regulatory frameworks becomes easier with increased visibility of tools handling sensitive data.
- Enhanced productivity: Providing employees with secure, approved tools that meet their needs keeps workflows uninterrupted while reducing friction.
Shadow IT Is Manageable. Here’s How.
The proliferation of SaaS applications isn’t slowing down—and neither is shadow IT. Left unmanaged, the consequences include increased security vulnerabilities, fractured ecosystems, and inefficiencies that directly impact your budget. But by taking a proactive, education-driven approach, IT teams can turn shadow IT from a liability into an opportunity for informed governance.
With unauthorized use of SaaS on the rise (and not slowing down), leaders must bring shadow IT to the forefront of organizational risk analysis. Don’t wait for unmanaged tools to take over your infrastructure. Take action with the right strategies, tools, and education to secure your organization now.
Want to learn more about best practices for shadow IT control? Check the on-demand webinar How to Solve Shadow IT: SaaS Management Demo led by the very same Serhat Can as he highlights how JumpCloud can integrate detection and prevention of shadow IT right into your normal IT workflows.
