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Shadow IT

Software the business depends on that nobody in charge knows about.

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

What it means

Shadow IT is technology adopted by individuals or teams without central approval — a free file-sharing account, a personal subscription, a spreadsheet that became a system.

Why it matters

It usually exists because the sanctioned tool did not do the job, so it is information as well as a risk. And it holds company data outside any control.

What it looks like in practice

Find it by asking rather than by scanning: what do you use that IT does not know about, and why. People answer honestly if the question is not a disciplinary one.

What to watch out for

Data leaving with the person who set it up, and no backup, no access control and no contract behind a system the business now depends on.

Where to get proper advice

Your own team. The NCSC on acceptable use policies.

Where to read more

Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

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