"Balancing Security Risks and Innovation Potential of Shadow IT Teams"

Shadow Information Technology (IT) teams, also known as rogue IT teams, have become more prevalent in recent years because of the rise of cloud-based apps and remote work. This has led to operational stress and security risks within many companies. According to Capterra, 58 percent of small and midsize businesses (SMBs) have experienced high-impact shadow IT efforts. Half of SMBs believe shadow IT teams are most typically formed because employees lack understanding about the process for purchasing new technology. This is closely followed by the view that the IT department is excessively slow or cumbersome, cited by 41 percent of SMBs, and the creation of an incubator team without the IT department's awareness, cited by 37 percent of SMBs. Shadow IT initiatives lead to risks and consequences for businesses. For example, 89 percent of SMBs note unfavorable financial effects from past shadow IT efforts at their organization, such as paying fines and replacing the developed software. In addition, 76 percent of SMBs say the shadow IT effort poses a moderate to severe threat to the cybersecurity of their organization. This article continues to discuss key findings shared by Capterra regarding shadow IT efforts. 

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