IT consulting companies in Los Angeles have seen their fair share of shadow IT in businesses and can attest to the huge costs associated with it that even CIOs aren’t aware of.

Shadow IT is the name given to any technology that is unauthorized within a company or is authorized but used in an unconventional way. These may have come about because users are not happy to wait around for the IT department to thoroughly assess a new application and will use what they think they need so that they can get their work completed faster. Unfortunately, this leads to a number of issues that could cost the business huge sums of money.

Security Implications

Security is important for all companies, and managed services firms in Los Angeles can help you if you think your safety is compromised. Unfortunately, shadow IT can be the main cause of security risks, as data and programs associated with it may not be included in backups. If used incorrectly, even authorized apps can be open to cybercrime. If hackers are able to infiltrate your IT systems, they could encrypt or steal your sensitive data causing untold costs in downtime and loss of critical networks.

Overpayments

If different departments are installing software without informing anyone else, they will have to have a license. The problem with this is that if there are multiple departments all doing the same thing, many licenses will be required and all of them will be paying the going rate. If IT consulting companies in Los Angeles or the company’s IT department were to negotiate these licenses, they could undoubtedly end up with a reduced rate because of the volume required.

If you would like to find out more about shadow IT and how it could be affecting your company, you need to get in touch with IT consulting companies in Los Angeles like us at Advanced Networks. Contact us and our technology experts will be on hand to explain more about this potentially crippling expense and how you can save money.