Across industries, we’re seeing a growing challenge emerge: business units acting independently of IT to purchase their own tools, platforms, and services. Whether it’s marketing spinning up a SaaS subscription, a branch location buying its own firewall, or a department outsourcing IT support without consultation—Shadow IT is no longer the exception. It’s becoming the norm.

Why It’s Happening

This trend is especially common in mid-market organizations with distributed teams or sub-entities. It often stems from good intentions: speed, agility, and getting work done without waiting on centralized approvals. But what starts as convenience can quickly evolve into renegade purchases, siloed systems, and ungoverned risk.

We’ve heard this described as “sub-entities breaking out of the flagpole”—an apt metaphor for business units making decisions that aren’t aligned with the organization’s broader IT strategy.

The Risks You Can’t Afford to Ignore

While Shadow IT can seem harmless, the risks are real:

• Security gaps: Unvetted tools may not meet corporate security standards or compliance requirements.

• Lack of visibility: IT teams lose sight of where data lives and who has access to it.

• Budget bloat: Overlapping tools and redundant services drive up costs.

• Operational inefficiencies: Disconnected systems lead to poor integration, inconsistent workflows, and user frustration.

• Compliance exposure: Tools purchased without oversight often fall short of industry regulations like HIPAA, PCI, or GLBA.

In short, Shadow IT doesn’t just create technical debt—it undermines the very governance IT leaders work so hard to maintain.

How Katalyst Helps You Reclaim Control

At Katalyst, we’re helping IT leaders face this challenge head-on with a proactive, partnership-driven approach. Our team works alongside CIOs, CISOs, and Directors of IT to:

• Centralize IT governance without slowing down innovation

• Audit and identify Shadow IT risks across departments and locations

• Consolidate and rationalize the tech stack to eliminate redundancy

• Implement secure, scalable frameworks that support autonomy with oversight

• Build a roadmap for modernization that balances flexibility with control

We know that today’s IT leaders are tasked with more than just keeping the lights on. You’re managing risk, enabling productivity, and driving strategic outcomes. That’s why we focus on solutions that bring visibility, consistency, and accountability to your technology environment—without stifling business agility.

Let’s Get Ahead of the Problem

Shadow IT isn’t going away. But with the right partner, you can turn it into an opportunity to unify your technology strategy, reduce risk, and increase operational efficiency.

Want to talk about how Katalyst can help? We’d love to hear what you’re seeing and explore ways to support your goals.