Does the cloud hide IT costs? The hidden costs of cloud shadow IT

Authors

  • Isabelle Lacombe EM Normandie Business School, Métis Lab

Abstract

Shadow IT is increasing a lot especially with the use of cloud technologies. This qualitative study, based on a case study of an IT cost reduction program in a public transportation company, aims to address the following question: How can companies detect and assess the hidden costs associated with shadow IT? We also compare the concepts of shadow IT with hidden costs. Our article is original in its contribution: it shows that it is possible to detect shadow IT other than with technical solutions, by relying on the accounts and analytical information contained in financial tools. It converges with the decision of the National Accounting Association in 2024 to change the “software” account to “IT solution”. It also completes the definition of hidden costs.

Author Biography

Isabelle Lacombe, EM Normandie Business School, Métis Lab

Isabelle Lacombe est professeur associée en finance. Elle est docteur en sciences de gestion avec une thèse sur l'application de l'Activity-Based Costing dans le domaine des services (1997). Ses thèmes de recherche sont sur le contrôle de gestion des Directions des Systèmes d'Information. Outre son parcours académique, elle a également une longue carrière professionnelle durant laquelle elle a travaillé sur le contrôle de gestion des DSI (Hewlett-Packard et conseil chez Arthur Andersen, BearingPoint et Deloitte).

Published

2025-03-01

How to Cite

Lacombe, I. (2025). Does the cloud hide IT costs? The hidden costs of cloud shadow IT. Systèmes d’Information Et Management (French Journal of Management Information Systems), 30(1), 87–118. Retrieved from https://revuesim.org/index.php/sim/article/view/1355

Issue

Vol. 30 No. 1 (2025): Digital Finance

Section

Empirical Research Article

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