Contractor access management is one of those things that sounds simple until you’re doing it. You need to get people set up quickly so work can begin, but those accounts have a way of lingering long after the project ends.
The classic approach—creating an account, maybe sharing a password, then hoping someone remembers to disable it later—creates exactly the kind of security gap that keeps IT folks up at night. Dormant accounts with active credentials are a gift to attackers.
The good news: if you’re using Microsoft 365, you can build a system that handles this automatically. Microsoft Entra (formerly Azure AD) Conditional Access lets you grant precise access and revoke it the moment someone leaves—no manual cleanup required.
Here’s how to set it up in about an hour.
Why This Matters
Forgotten contractor accounts are a real problem. The 2013 Target breach—which compromised millions of customer records—started with credentials from a third-party HVAC vendor. The vendor had legitimate access, but it was broader than necessary and wasn’t properly monitored.
Automated access management eliminates the “someone forgot to disable that account” problem entirely. When a contractor’s project ends and you remove them from the group, access disappears immediately.
Step 1: Create a Security Group for Contractors
First, organize your contractors into a single, manageable group. In the Microsoft Entra admin center, create a security group with a clear name like “External-Contractors” or “Temporary-Access.”
This group becomes your control point. Add contractors when they start. Remove them when they’re done. Everything else flows from group membership.
Step 2: Set Up an Expiration Policy
Now create a Conditional Access policy that applies to your contractor group. This policy should:
- Require multi-factor authentication. Non-negotiable for external users.
- Set a sign-in frequency. Require re-authentication every 90 days (or whatever matches your typical contract length). When someone is removed from the group, they can’t re-authenticate—access ends automatically.
The key here is that removal from the group is the only action required. The policy handles the rest.
Step 3: Limit Access to Specific Applications
A freelance writer needs your content management system, not your financial software. A developer needs staging servers, not your HR platform.
Create a second Conditional Access policy for your contractor group:
- Under “Cloud apps,” select only the applications they should access (Teams, SharePoint, specific project tools)
- Block access to everything else
This is the principle of least privilege in action: give people access to what they need, and nothing more.
Step 4: Add Strong Authentication Requirements
You can’t manage a contractor’s personal device, but you can control how they prove their identity. Consider requiring:
- A compliant device (if they’re using company-provided equipment), OR
- Phishing-resistant authentication like Microsoft Authenticator
This makes credential theft much harder without creating friction for legitimate users.
How It Works in Practice
Once configured, the system runs itself:
- Contractor joins the project: Add them to the security group. They immediately get the access you’ve defined, with all security controls in place.
- Contractor finishes the project: Remove them from the group. Access is revoked instantly, including any active sessions.
No more forgotten accounts. No more hoping someone remembered to disable the old login. The system enforces your policies automatically.
Getting Started
The setup takes about an hour, and most of that is deciding which applications each contractor type should access. The technical configuration is straightforward if you’re familiar with the Entra admin center.
If you’re not sure where to start, begin with a single contractor type (like marketing freelancers) and expand from there.
Want help setting up automated contractor access? We can walk you through the configuration and make sure it fits your workflow. Book a quick call—no pressure, just practical help.
Easier IT, Happier Employees.
