IT Leaders Prioritize SaaS Management to Tackle Shadow IT

Many IT teams face the same problem: they don’t know exactly how many SaaS apps their employees are using. A project manager might sign up for a new tool to track tasks, a marketing team might use a different app to share files, and another department could be paying for a service no one remembers. Over time, these apps pile up, creating gaps in security, wasted money, and confusion during audits.

This hidden usage of tools, often called Shadow IT, is becoming one of the biggest headaches for IT leaders. The more SaaS grows, the harder it gets to keep track of what’s being used, who has access, and whether the apps meet company policies. SaaS Management is becoming a clear priority because it gives IT leaders a way to bring order to this chaos. It helps them see the full picture, reduce risks, and make better decisions about the tools their teams rely on every day.

What is SaaS Management?

SaaS Management is the practice of tracking all the cloud-based applications a company uses, ensuring they are secure, cost-effective, and necessary. It’s about knowing what tools are in use, who is using them, and how much they cost.

In the past, IT teams mainly managed physical hardware and licensed software installed on company machines. Today, with hundreds of SaaS tools available at the click of a button, the scope of IT management has grown. Employees can easily sign up for new apps with a credit card, which gives them flexibility but also creates gaps in visibility for IT leaders. This shift has made SaaS Management an essential part of modern IT practices.

SaaS Management also connects closely with IT Asset Management (ITAM). Just like ITAM tracks computers, servers, and on-premise software, SaaS Management focuses on the lifecycle of cloud applications from adoption to renewal or cancellation. It ensures that every app is accounted for, every license is used effectively, and every renewal decision is made with intention rather than left on autopilot.

The goal is simple: to give IT leaders a complete view of SaaS usage, reduce unnecessary spending, and keep company data secure. When done well, SaaS Management provides both flexibility for employees and oversight for IT teams, creating a healthier balance between innovation and control.

Understanding Shadow IT

Shadow IT happens when employees or teams start using software or cloud apps without telling the IT department. Most of the time, it is not done to cause problems. People just want to get their work done faster, so they sign up for a tool they like. For example, a marketing team might subscribe to a design app with a company credit card, or a sales manager might create accounts for a file-sharing service. These tools may be helpful, but if IT doesn’t know about them, they quickly become a hidden risk.

The problem with Shadow IT is that it creates blind spots. If the IT team doesn’t know an app exists, they cannot make sure it is safe, properly managed, or even still in use. This can lead to issues such as:

• Security risks: An unapproved file-sharing app could expose sensitive customer data if it does not meet company security standards.
• Compliance gaps: If employees use a tool that stores data outside approved regions, the company may fail an audit.
• Unnecessary costs: Different departments might pay for similar apps, or subscriptions might continue long after employees stop using them.

Shadow IT shows how easy it is for SaaS tools to spread across a company. This is why IT leaders are now making SaaS Management a top priority—it gives them the visibility to discover hidden apps, prevent waste, and protect the organization from risks.

Why SaaS Management is Becoming a Priority?

The rapid growth of SaaS has given employees more freedom to choose the tools they like, but it has also created new challenges for IT leaders. As more apps enter the workplace, it becomes harder to keep control of spending, security, and compliance. This is why SaaS Management is now at the top of the agenda.

There are a few key reasons behind this shift:

Rising costs

SaaS apps are often billed on a subscription basis, and small charges can add up quickly. For example, a company might discover they are paying for five different project management tools across departments, when only one is actually needed. SaaS Management helps uncover overlap and reduce waste.

Security concerns

Every new app introduces another entry point for company data. If IT doesn’t know an app exists, it can’t be monitored for risks. A simple example is when an employee leaves the company but still has access to an unapproved cloud storage tool. That account becomes a potential data leak.

Compliance pressure

Regulations like GDPR or HIPAA require companies to know where their data is stored and how it is used. If Shadow IT apps are running in the background, the company could fail an audit. SaaS Management provides the visibility needed to avoid these gaps.

Need for better visibility

IT leaders want a clear picture of all SaaS usage in one place. This makes it easier to plan budgets, manage renewals, and make smarter choices about which apps are truly necessary.

In short, SaaS Management is no longer a “nice to have.” It has become a business priority because it allows organizations to stay in control, cut waste, and keep data secure while still giving employees access to the tools they need.

Read also: Cut the Waste: How to Find and Fix SaaS Sprawl in Your Stack

Best Practices for Tackling Shadow IT with SaaS Management

Managing Shadow IT is not just about blocking apps. It’s about giving IT leaders the visibility and tools they need to guide smarter decisions. Here are some practices that can make a big difference:

1. Build a clear inventory of SaaS apps

The first step in tackling Shadow IT is knowing what apps are being used across the organization. Without visibility, IT leaders are left guessing. A clear inventory gives a single source of truth for all SaaS tools—approved or not—so nothing slips through the cracks.

For example, an IT team might think the company only uses one file-sharing platform. But once they dig deeper, they may find that the design team pays for their own service, the sales team uses another, and a few individuals still rely on personal accounts. Each of these tools creates extra cost and risk. By documenting them in a single inventory, IT can decide which ones to keep, which ones to consolidate, and which ones to retire.

A well-maintained SaaS inventory also helps in planning budgets, managing renewals, and responding to audits. It creates a foundation for smarter decisions about software use across the business.

2. Track usage and adoption

Knowing what apps exist is only half the job. The next step is to understand how they are being used. Many companies pay for far more licenses than they actually need, simply because usage is not tracked closely.

For example, a business might subscribe to 300 seats of a video conferencing tool, but reports show that only 180 employees log in regularly. The rest of those licenses sit idle, draining money month after month. By tracking adoption, IT leaders can quickly see which tools are delivering value and which ones are not.

Usage data also helps highlight duplicate tools. If one team uses Slack and another prefers Microsoft Teams, IT can compare adoption rates and decide if both are truly necessary. This not only saves costs but also makes collaboration smoother by encouraging everyone to use the same platform.

3. Control user access

Employees come and go, and so do their access needs. When new hires join, they should quickly get access to the tools they need. When someone leaves, their accounts should be closed to avoid data leaks. Automating these steps reduces mistakes and improves security.

4. Stay on top of renewals

Many SaaS subscriptions renew automatically, which can lead to paying for apps that are no longer required. Setting reminders or using SaaS Management tools to review renewals helps IT teams cancel or renegotiate before money is wasted.

5. Set clear policies for SaaS adoption

Instead of discouraging employees from exploring new tools, provide a process for them to request apps. This way, IT can review them for security, cost, and compliance before approval. It keeps innovation alive while avoiding risky blind spots.

Read also: What Is SaaS License Management? How It Helps You Avoid Looming Risk

How SaaS Management Fits into IT Asset Management (ITAM)?

IT Asset Management (ITAM) has traditionally focused on physical hardware like laptops, servers, and mobile devices, along with licensed software installed on company machines. But as SaaS has become the dominant way businesses use software, ITAM has had to expand its scope.

SaaS applications are now considered IT assets just like hardware and on-premise software. They have costs, usage patterns, lifecycles, and risks that need to be managed. This means SaaS Management is not separate from ITAM—it is becoming an essential part of it.

For example, think of a company that tracks laptops in its ITAM system but ignores SaaS apps. The hardware inventory might be complete, but without SaaS visibility, the IT team misses hundreds of cloud subscriptions draining the budget and exposing the business to risk. By adding SaaS Management into ITAM, the organization gains a full picture of all assets, both physical and digital.

Integrating SaaS into ITAM also helps improve governance. Renewals, license usage, and compliance checks for SaaS apps can be handled using the same processes already applied to other IT assets. This unified approach allows IT leaders to see the entire technology landscape, make smarter investment decisions, and avoid silos between traditional IT and cloud-based services.

In short, SaaS Management extends ITAM into the cloud era. It ensures that modern IT asset management reflects the real way businesses use technology today.

The Future Outlook

SaaS adoption is only going to grow. Most organizations already rely on dozens or even hundreds of cloud apps, and this number is expected to increase as more teams choose flexible, subscription-based tools. With this growth, the challenges of managing cost, security, and compliance will also get bigger.

In the future, SaaS Management will become a standard part of IT practices, just like managing hardware or licensed software. Companies that ignore it risk falling into deeper issues such as uncontrolled spending, data breaches, and compliance failures. On the other hand, IT leaders who take SaaS Management seriously will have the advantage of full visibility and better control.

We are also likely to see more automation in this space. SaaS Management platforms will continue to improve, helping IT teams automatically discover apps, track renewals, and enforce security policies with less manual effort. Instead of chasing down hidden subscriptions, IT leaders will be able to focus on higher-level decisions, like which tools best support long-term business goals.

SaaS is not slowing down, and neither is Shadow IT. The organizations that succeed will be the ones that treat SaaS Management as a core part of IT Asset Management, ensuring technology stays both effective and under control.

Conclusion

The growth of SaaS has changed the way organizations manage their technology. Employees now have the freedom to choose tools that help them work faster, but this freedom has also created new challenges in the form of Shadow IT, rising costs, and compliance risks.

SaaS Management gives IT leaders a way to bring order to this growing landscape. It also fits naturally into IT Asset Management, expanding its focus from hardware and licensed software to the cloud applications that now power daily operations. This shift is no longer optional. As SaaS continues to grow, managing it with the same care as other IT assets has become a priority for every organization that wants to stay secure, compliant, and cost-effective.