Easily Change External Users to Internal Users in Office 365 In Hindi
Sunday, February 1, 2026
In today’s digital workplace, collaboration across organizational boundaries is common. Microsoft Office 365 (O365) has made it easy to share resources with external users such as contractors, consultants, and partners. However, there are situations when an external user needs to be converted into an internal user for better management, security, and licensing purposes. This article will guide you step-by-step on how to easily change external users to internal users in Office 365.
What is an External User in Office 365?
An external user in Office 365 is someone who does not belong to your organization but has been granted access to resources in your tenant. These users are typically added via Azure Active Directory (Azure AD) B2B collaboration, and their email accounts are outside your domain. Examples include:
Freelancers or contractors
Clients or partners needing access to SharePoint or Teams
Third-party consultants with limited collaboration permissions
External users are treated differently from internal users in terms of licensing, permissions, and administrative control.
What is an Internal User in Office 365?
An internal user is a user account that belongs to your organization’s domain in Office 365. These users typically have full access to Microsoft 365 services based on the assigned license, including Exchange Online, SharePoint, OneDrive, and Microsoft Teams.
Converting external users into internal users is beneficial because it allows:
Full access to Office 365 services
Better user management and security control
Easier license assignment and reporting
Integration with internal groups and policies
Why Convert External Users to Internal Users?
Sometimes, your organization might start with external collaboration but later decide to hire a contractor as a full-time employee or offer an external consultant a permanent position. Converting their account ensures:
Centralized User Management: You can manage all users uniformly from Azure AD or the Microsoft 365 admin center.
Security Compliance: Internal users can be subject to internal policies, multi-factor authentication, and conditional access.
Licensing Simplification: Instead of paying external guest user licenses, you can assign full licenses efficiently.
Seamless Access: Internal users can access internal SharePoint sites, Teams, and other resources without limitations.
Prerequisites Before Conversion
Before changing an external user to an internal user, ensure the following:
Admin Access: You need to have either Global Administrator or User Administrator roles in Microsoft 365.
User Information: Collect the external user’s email, display name, and any other details required for account creation.
Licenses Available: Ensure that you have an available Office 365 license to assign to the internal user.
Backup Data: If the external user has already accessed resources, consider backing up their data (emails, Teams chat, files) for smooth transition.
Step-by-Step Guide to Convert External Users to Internal Users
There are multiple ways to convert an external user to an internal user, including using Microsoft 365 Admin Center, PowerShell, or Azure AD Portal. We’ll cover each method below.
Method 1: Using Microsoft 365 Admin Center
The Microsoft 365 Admin Center provides a simple interface for managing users.
Sign In to Admin Center
Sign in with your admin account.
Navigate to Users > Guest Users
In the left-hand menu, click Users > Guest Users (external users are listed here).
Select the User
Find the external user you want to convert and click on their name.
Delete the Guest User
Before converting, you need to remove the guest account. Make sure any shared resources are backed up.
Create a New Internal User
Go to Users > Active Users
Click Add a User
Enter the user details, including their name, username, and domain.
Assign the appropriate license.
Restore Access to Resources
Reassign any files, SharePoint sites, or Teams access previously used by the guest.
Note: This method involves deleting the guest account and recreating it as an internal account. It is simple but may result in loss of chat history or access logs.
Method 2: Using Azure Active Directory (Azure AD)
Azure AD allows you to manage B2B users with more control.
Sign In to Azure Portal
Go to https://portal.azure.com
Sign in with your admin account.
Navigate to Azure Active Directory > Users
Select External users to view your guest accounts.
Delete Guest Account
Select the user and click Delete.
Create a New Internal User
Go to Users > New User
Choose Create User
Fill in the required details and assign licenses.
Migrate Resources
Use Microsoft 365 tools to assign permissions and restore access to files or Teams.
Azure AD Pros: More control over user attributes, security policies, and reporting.
Also Read This Technology
Method 3: Using PowerShell (Advanced)
PowerShell allows bulk conversion or automation.
Connect to Microsoft 365
List All Guest Users
Remove Guest User
Create New Internal User
Assign License
PowerShell Pros: Efficient for multiple users, automates tasks, and maintains detailed logs.
Tips to Ensure Smooth Transition
Communicate With Users: Inform the external user about the conversion and expected changes.
Plan Data Migration: Use SharePoint, OneDrive, or Teams backup solutions to retain important data.
Assign Appropriate Licenses: Choose the correct Office 365 license based on the user’s role.
Verify Access: After conversion, ensure the internal user can access all necessary resources.
Update Security Policies: Make sure multi-factor authentication and conditional access are applied.
Common Issues and How to Fix Them
1. Lost Teams Chat History
Solution: Export chat history before deleting the guest account. Alternatively, archive Teams messages using Microsoft 365 compliance tools.
2. License Assignment Errors
Solution: Ensure your tenant has available licenses. Remove unused licenses if needed.
3. Resource Access Denied
Solution: Reassign permissions to SharePoint sites, Teams, and OneDrive.
4. External Email Conflicts
Solution: If the external email already exists in your domain, create a new internal username or alias.
Conclusion
Converting external users to internal users in Office 365 may seem daunting, but with the right approach, it can be a smooth process. By following the methods outlined—using Microsoft 365 Admin Center, Azure AD, or PowerShell—you can ensure proper user management, maintain security, and optimize licensing. Proper planning, communication, and migration steps are key to a seamless transition.
Once external users become internal users, your organization gains full control over access, licensing, and compliance, helping you maintain a secure and organized digital workplace.
Key Takeaways
External users are guests with limited access, while internal users belong to your organization.
Conversion ensures better management, security, and licensing.
Use Admin Center for simple conversions, Azure AD for control, or PowerShell for bulk automation.
Plan data migration and communicate with users to avoid disruptions.
Post-conversion, verify permissions and enforce security policies.