Shadow IT Reborn: Why Rogue Automation Becomes a Competitive Asset

by | Jul 17, 2025 | Automation

Informal automation efforts by non-IT staff, once dismissed as risky or inefficient, are now proving to be a valuable source of innovation. As low-code platforms, robotic process automation, and cloud integrations become widely accessible, CIOs are rethinking how to support distributed digital experimentation without sacrificing governance.

Unofficial Doesn’t Mean Unproductive

Shadow IT often arises from employees trying to solve problems that have not been prioritized by central IT. Automating approvals, combining data from multiple systems, or accelerating routine workflows are all common triggers. When left unmanaged, these efforts can lead to fragmentation. When guided appropriately, however, they reveal opportunities for broader application.

Building Guardrails, Not Roadblocks

Rather than prohibiting unsanctioned automation, CIOs can implement support structures:

  • Establish a center of excellence for citizen development
  • Provide approved platforms for low-code or automation development
  • Offer training and documentation on best practices
  • Require that any automation be registered with IT and reviewed periodically

Business units often adopt automation when traditional project intake processes are too slow. Providing approved channels allows agility to flourish without losing oversight.

Managing the Risk Surface 

Even helpful automation can introduce security and compliance risks. CIOs must ensure that automation efforts—whether employee-built or department-led—follow enterprise standards for data handling, identity access, and uptime. Logging, monitoring, and audit trails should be enabled by default on all approved platforms.

Measurement and Value

To determine the value of distributed automation, CIOs can track:

  • Volume of automations deployed
  • Time or cost savings generated
  • Number of users trained and certified
  • Incident frequency tied to unsupported solutions

These indicators provide both a risk signal and a performance measure, helping to identify where support is needed or successes can be scaled.

Reframing the Role of Central IT

As discussed in our cloud fatigue article, CIOs must strike a balance between centralization and flexibility. Supporting secure, department-led innovation is one way to reduce fatigue while improving business outcomes. Shadow IT is no longer something to eliminate—it is something to refine and elevate.

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