Is Shadow IT Still a Problem? | In the News

Shadow IT: you’ve probably heard of it. Also known as Stealth IT, this refers to information technology (IT) systems built and used within organizations without explicit organizational approval or deployed by departments other than the IT department.

There is also the issue of budgeting and spend. Research from Everest Group estimates that shadow IT comprises 50% or more of IT spending in large enterprises. While this could reduce the need for chargeback/showback processes by putting spend within individual departments, it makes technology spend far less trackable, and such fragmentation eliminates the possibility of bulk or enterprise discounting when services are purchased for the business as a whole.

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