Gartner experiences have found that shadow IT is 30 to 40 % of IT spending in large organizations, and our research at Everest Group finds it comprises 50 percent or more. Either way, I agree with these records are a real understatement of the shadow IT environment — spending on IT that doesn’t go in the course of the sanctioned business IT shared service function. It’s a big issue, and increasingly complex. Historically, the increase in complexities, the need for greater security or the wish to function at business wide scale drove shadow IT out of departments and into the management of the IT group.
That’s now not the case; because of SaaS and cloud items/amenities, shadow IT can now operate securely at scale. So how can a CIO address the dangers and rate of shadow IT?To eliminate the problem of shadow IT, we wish to start with what causes it to occur in the first place. Simply put, it comes down to enterprise IT not serving company needs well enough. Typically, the IT group is too slow or not responsive for the urge for food of enterprise users, too costly and doesn’t align well with the company needs. IT specializes in useful costs per unit as the price it gives you; however the company cares more about gaining quick capability and ability to serve its needs. Enterprise IT simply doesn’t function at the speed of enterprise.
So, the enterprise users build their own functionalities and features through shadow IT purchases.