Shadow IT in an SME: The Risk Exists and You Need to Protect Yourself

Shadow IT has often been seen as a significant threat to large enterprises, but what about small and medium-sized enterprises (SMEs) in Belgium? This new free practical guide from Belcenter explores the advantages and implications of Shadow IT for SMEs and offers practical solutions to minimize the risks associated with using unauthorized devices and software within your company.

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In 2024, around 77% of IT professionals view Shadow IT as a major concern. This phenomenon is particularly relevant for SMEs, which are often less equipped to manage these risks. In Belgium and the UK, a survey revealed that 85% of SMEs are concerned about applications or resources managed outside the control of their IT department. Moreover, 46% of SMEs manage between 5 and 10 unauthorized tools, highlighting the growing complexity of their IT environment. The risks are numerous: 68% of organizations reported being victims of cyberattacks linked to Shadow IT. No surprise, then, that 90% of employees admit they continue to engage in risky practices despite being aware of the dangers. However, Shadow IT can also present an advantage. How can you ensure it does not become a source of risk? That’s what we’ll explore in this article.

macbook souris et iphone d'un employé sur une table dans une entreprise
Shadow IT: How to Manage Unauthorized Devices in Your Business?

What is Shadow IT in an SME?

The term “Shadow IT” refers to the use of hardware, software, or IT services by employees that have not been approved by the company’s IT department. In other words, it encompasses any technological tool that operates outside the control of IT.

In a small or medium-sized enterprise, this might manifest as the use of personal devices (smartphones, tablets, personal computers, smartwatches) on the company’s network, the installation of unauthorized software, or the adoption of unapproved cloud services.

 

Shadow IT - Cloudflare
Source : Cloudflare

Shadow IT: Why It’s Not All Bad?

Although Shadow IT is often perceived as a threat, it also offers advantages for SMEs, especially since BYOD (Bring Your Own Device) is increasingly unavoidable. Allowing employees to use their own IT equipment or smartphones in a professional context can be beneficial. You enable them to use tools they are already familiar with, which can speed up work processes and enhance their efficiency.

Providing some flexibility in the choice of tools can improve employee satisfaction and retention (and even serve as a retention tool in a highly competitive job market!). Finally, by allowing employees to use certain non-validated tools, SMEs can reduce the pressure on their often resource-limited IT departments.

In short, instead of outright banning Shadow IT, consider compromises. For instance, allow certain tools after they have been evaluated from a security perspective.

How to protect your business

Pour se protéger efficacement contre les risques du Shadow IT, les PME doivent adopter une approche équilibrée qui tolère certaines pratiques, tout en les encadrant.

3 Essential Steps

  1. Strengthen Security: Use advanced security solutions such as next-generation firewalls, threat detection and response tools, and mobile device management (MDM) policies. From endpoints to cloud data, no perimeter should be underestimated.
  2. Reasonable Compromises: Rather than completely banning Shadow IT, consider compromises. For example, allow certain tools after they have been evaluated for security.
  3. Effective Shadow IT Policy: Develop a clear policy that defines what is allowed and what is not, while providing exceptions within a controlled framework to meet specific employee needs (including those of visitors!).

Security Solutions

To mitigate the risks associated with Shadow IT while reaping its benefits, SMEs should implement a rigorous management strategy that includes employee awareness. Train staff on risks and best practices. Conduct regular audits to identify unapproved tools and assess their impact on the company’s security. Finally, invest in security solutions tailored for SMEs that allow you to monitor and manage unauthorized devices and software. This will help you avoid the immense risks to your IT, whether it’s phishing or more targeted attacks.

 

Belcenter develops multi-layered security solutions that protect both your company’s devices and data (on-premises, in the cloud, on mobile devices).

Our experts recommend opting for the Endpoint Protection solution with Mail Protection and Microsoft Defender. This way, your SME is optimally protected against all threats. You manage your security 24/7 via a user-friendly cloud interface, with a view of various protection levels and customized reports.

Shadow IT in SMEs is an inevitable phenomenon, but with the right strategies and a proactive approach, it is possible to minimize the risks while enjoying the benefits.

Would you like to conduct a security audit in your company? Our experts are available to assess all your needs after an inventory. Small and medium-sized enterprises have specific needs, which is why Belcenter has developed a telecom offer dedicated to SMEs in Belgium.

How can we help?