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Managing Risk in Light of 'Shadow IT'

By David Ray

There is a growing gap between company-sanctioned apps, services and programs and what employees are actually using. This gap is called “Shadow IT” and it is emerging as a major challenge for both in-house and outside counsel as well as CIOs, chief privacy officers and chief information security officers.

The emergence of Shadow IT can be attributed to the consumerization of business applications. Employees are accustomed to “App culture” — downloading or setting up solutions themselves rather than going through IT. The average employee actively uses 30 cloud services, including eight collaboration services, five file-sharing services and four content-sharing services, according to a study from cloud security firm SkyHigh Networks. Workers seek out the best cloud-based resources to do their jobs, and often resist traditional corporate tools which are less user-friendly and don't promote easy collaboration and sharing.

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