What is Shadow SaaS?

SaaS applications in-use without the knowledge of IT or security. Often referred to as "business-led SaaS", shadow SaaS happens when users create SaaS accounts outside of the official IT purchasing process. Shadow, or business-led, SaaS has increased significantly with changes to remote work and digital transformation. In 2021, 83 percent of organizations reported the value of business-led IT strategies—characterized by business teams identifying and sourcing technology, especially SaaS. And in 2022, 36 percent of SaaS spending will be outside core IT budgets, selection, procurement, support, and security oversight.

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