Risks of Shadow IT in development teams

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Today, technical teams operate in increasingly agile environments. As a result, there is a growing need to move quickly, try out new technologies, and avoid unnecessary roadblocks. This has given rise to a practice that is becoming more and more common (and often unnoticed): the use of tools or technology services without the knowledge or approval of the IT department, also known as Shadow IT.

This phenomenon is present in virtually all organizations, from startups to large enterprises. While it often comes from good intentions, it can also create significant risks if not properly managed.

In this article, we will take a close look at what Shadow IT is, why it has become so common, what consequences it can have for security, and how to address it strategically without slowing down innovation or limiting the autonomy of technical teams.

What is Shadow IT?

Shadow IT refers to the use of any system, software, device, or technology service without the authorization or supervision of an organization’s IT department. In other words, it includes any solutions that employees adopt on their own to solve an immediate need, without going through the official internal approval process.

This phenomenon can include:

Cloud storage apps like Google Drive, Dropbox, or WeTransfer used to share files quickly
Non-corporate messaging services like WhatsApp, Telegram, or free Slack accounts used for communication between teams or with clients
Project management tools like Trello, Notion, or Asana without official backing
Cloud services and development platforms like Vercel, Firebase, Heroku, GitHub Actions, or even personal instances on AWS, Azure, or GCP

For developers, Shadow IT often appears in the form of external APIs, personal test environments, microservices deployed outside the official infrastructure, or even temporary databases on free-tier services. While these decisions are often made with the good intention of speeding up development, prototyping, running A/B tests, or bypassing bureaucracy, they represent a hidden risk that must be identified, understood, and in many cases, redirected toward safer and more sustainable practices.

Why is Shadow IT more common now?

Shadow IT has become more frequent due to a combination of technological and organizational factors. The growth of remote work, the adoption of agile methodologies in software development, and the massive availability of SaaS tools have created an environment where it is extremely easy to access technology without involving the IT department.

While this allows teams to work more independently, it also means the organization loses visibility, control, and security if it is not properly managed.

In addition to this tech context, there may be internal causes that further encourage the appearance of Shadow IT, such as:

Lack of agility from the IT department: When IT responds slowly to technical needs and creates bottlenecks for urgent requests, users tend to look for their own solutions
Lack of awareness of IT policies: Many employees do not understand the legal, technical, or security implications of using unauthorized tools
Need for innovation and experimentation: Teams in development, design, marketing, or product often need emerging technologies that IT has not yet evaluated or approved
Easy access to SaaS tools: The wide availability of affordable and easy-to-use tools lowers the entry barrier, making it easy to adopt them without prior review

All of this makes Shadow IT an almost inevitable phenomenon, and that is why it is so important to understand it, identify it, and manage it strategically.

What are the risks associated with Shadow IT?

Using unauthorized tools within an organization may seem like a practical short-term fix, but it brings several risks that can impact the organization on many levels:

Security breaches: Tools that have not been approved by IT often lack essential security controls and standards. These include basic practices such as multi-factor authentication, data encryption, or secure credential management. As a result, the likelihood of data leaks, unauthorized access, or cyberattacks increases significantly and could have been prevented through proper oversight.
Regulatory non-compliance: Another serious risk is failing to comply with regulations. Companies must follow laws like the General Data Protection Regulation (GDPR) or HIPAA in the healthcare industry. Using unauthorized services may involve processing personal data on unregulated servers or without proper consent, which can lead to legal penalties, damage to reputation, and financial liability.
Loss of control over data: When external platforms are used, data may be stored in unknown locations, with disorganized copies and no clear policy for backup, retention, or deletion. This makes it harder to track, audit, or protect what is often the organization’s most valuable asset.
Operational inefficiencies: The use of tools that do not integrate with official systems leads to process fragmentation, duplicated efforts, technical incompatibility, and a lack of overall visibility. This negatively affects productivity, tech support, and the ability to maintain a sustainable long-term architecture.

Solutions for managing Shadow IT

Managing Shadow IT in a smart way does not mean banning it. It means enabling and guiding these practices safely, transparently, and collaboratively. The goal is not to restrict the autonomy of technical teams, but to create an environment where they can experiment and make progress without compromising security.

Here are some best practices to help strike that balance:

Proactive communication with IT: Building a collaborative relationship with IT is essential. If you need a new tool or infrastructure, open up a discussion to explain the use case, outline the technical or functional benefits, and suggest a viable solution. This allows IT to assess risks, find secure alternatives, and often speed up approval.
Controlled use of test environments: Experimentation is a critical part of development, but it should happen in secure, isolated environments. Use well-defined test environments without access to real data or critical systems. This way, you can validate new tools or integrations without risking operations.
Clear but minimal documentation: Even if the solution is not official or final, documenting the tools and services being used is essential. A simple README file, a wiki, or a shared doc can make a big difference if someone needs to audit, support, or migrate that solution later.
Use of approved tools and sandbox environments: More and more companies are offering catalogs of pre-approved tools or sandbox environments designed for safe testing and validation. If your company provides these resources, take advantage of them.
Security integrated into development: Applying security measures directly in the code is one of the best ways to reduce risk, even when using unofficial tools.

Conclusion

The presence of Shadow IT in organizations shows that teams need more agility, autonomy, and the right tools to face everyday challenges. Ignoring its existence or trying to eliminate it completely is usually counterproductive. Instead, the focus should be on understanding its causes, assessing the risks, and building a flexible and collaborative governance framework that lets teams innovate safely.

Strategic Shadow IT management means finding the right balance between control and autonomy through open communication with the IT department. This encourages thoughtful use of test environments, basic but clear documentation, and the integration of security best practices during development, all while reducing risk without harming productivity or innovation.

In short, the goal is to turn Shadow IT into an opportunity to strengthen the organization’s tech culture. It is about promoting shared responsibility and building environments where experimentation goes hand in hand with security and long-term sustainability.

Resources:
[1] Wikipedia – Shadow IT
[2] Instituto Nacional de Ciberseguridad – Shadow IT al descubierto: riesgos y buenas prácticas

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