How Can Organizations Manage Non-Employee Identities in Hybrid Environments?

February 6, 2025

Hybrid environments have changed the way organizations manage workforce identities. More companies now rely on non-employees like vendors, contractors, and freelancers to fill operational gaps and provide specialized expertise. While this flexibility has its advantages, it can also cause challenges in identity management, especially when external users require access across multiple cloud platforms and on-premise systems.

Traditional identity and access management (IAM) strategies were built with full-time employees in mind. These approaches work off the assumption that their workforce is relatively stable and has long-term access needs. This makes them unideal for managing non-employee identities. External users often have shorter engagements, varying levels of access, and less direct oversight, creating security and compliance risks if their access is not tightly controlled.

When non-employee lifecycle management is unstructured, the risks can build up. Former vendors or contractors may retain access to systems long after their engagement ends. Compliance issues arise when organizations cannot track who has access to sensitive data. Operational inefficiencies emerge when onboarding and offboarding are handled manually, causing delays and unnecessary administrative overhead. A more structured approach is necessary to manage non-employee access in hybrid environments effectively.

What are the key stages/challenges of the non-employee identity lifecycle?

Managing non-employee access requires an end-to-end approach that includes onboarding, role changes, tracking engagement scope, and timely offboarding. Non-employees often work with companies on short-term contracts, project-based assignments, or vendor agreements, requiring continuous oversight.

Hybrid environments introduce unique considerations such as cross-cloud identity management, inconsistent IAM policies across departments, and difficulty tracking engagement duration across multiple platforms. Without proper oversight, organizations risk orphaned accounts, unauthorized access, and compliance violations.

Onboarding challenges in hybrid environments

Onboarding is the first and often the most fragmented phase of the lifecycle in hybrid environments. Many organizations allow different departments to onboard their own vendors and contractors without centralized oversight. This decentralized approach often results in inconsistent access control policies and increased security risks.

For example, a Gartner report on IAM failures found that 75% of organizations lack standardized onboarding processes for non-employees, leading to security gaps and compliance issues [1].

In hybrid environments, onboarding also involves federated access vs. direct identity integration decisions. Organizations need to decide whether external users authenticate using their employer’s credentials (federated) or if they are assigned new accounts within the organization’s IAM system. Federated access reduces administrative burden but may limit control over identity security policies, whereas direct integration increases security but adds management complexity.

Managing role changes and temporary assignments

Non-employees often switch roles within an organization or take on temporary assignments that require different levels of access. Without a system for real-time access adjustments, non-employees may have excessive privileges, or not enough access.

Tracking engagement duration and scope

Unlike full-time employees, whose employment terms are more closely recorded by HR, non-employee assignments often have unclear timelines. Their contracts may be extended or changed without formal records, making it difficult to know when their access should be removed.

Hybrid environments amplify this issue by adding multiple identity providers. This can make it harder to track who has access across AWS, Azure, Google Cloud, SaaS platforms, and private data centers.

Offboarding and preventing lingering access risks

Offboarding is one of the most overlooked aspects of non-employee lifecycle management. Many companies rely on manual processes for revoking access, increasing the likelihood that former vendors or contractors will retain credentials for months or even years.

A study by the Identity Defined Security Alliance found that only 34% of organizations revoke system access on the day an employee leaves. Half of the organizations surveyed took three days or longer to revoke access, posing regulatory compliance issues and increasing the risk of data theft [2].

How can organizations optimize non-employee onboarding?

Standardized identity vetting and approval

Organizations should have a uniform process for verifying non-employee identities. This may include identity proofing, multi-factor authentication (MFA), and role-based access approvals. Identity governance policies should be established to ensure that vendors only receive the minimum level of access needed for their work.

Automating account provisioning

Manually creating and managing non-employee accounts is inefficient and error-prone. By integrating IAM automation tools, organizations can ensure that vendor accounts are provisioned, monitored, and deactivated as needed. Automated provisioning reduces human error and prevents over-permissioning.

Time-limited credentials and expiring access

To prevent lingering access, organizations should issue time-limited credentials for non-employees. Hybrid IAM solutions now support temporary access tokens and auto-expiring credentials to prevent lingering access.

Managing role changes and engagement transitions in hybrid environments

Unlike traditional IT environments, where identity management is centralized, hybrid environments require dynamic, cross-cloud identity governance to keep up with role changes. Manually adjusting access each time a non-employee's role changes is inefficient and increases the risk of over-permissioning or access creep. Organizations should integrate automated IAM workflows that adjust permissions dynamically based on:

  • Engagement status (e.g., project start/end dates, contract terms).
  • Cloud service usage patterns (e.g., vendor accessing AWS for development but no longer working on the project).
  • Security policies enforcing least privilege access based on role.

For example, a global consulting firm implemented automated role adjustments using AI-driven IAM solutions. By tracking non-employee assignments across multiple cloud tenants, their system could automatically revoke unnecessary permissions when a vendor completed a project while ensuring the right level of access for ongoing tasks.  

Tracking vendor and contractor assignments more effectively

A key challenge in hybrid environments is ensuring real-time visibility into vendor and contractor assignments across different cloud platforms. Traditional access tracking systems often fail to keep up with non-employee engagement transitions, leading to outdated permissions and security risks. Organizations should implement IAM solutions with dynamic workflows that:

  • Link cloud access rights to contract terms and project milestones.
  • Use automated access certification reviews for non-employee accounts.
  • Provide cross-cloud access reporting to improve visibility into who has access to what, and why.

Enforcing real-time authorization for access escalation requests

In hybrid environments, access escalation requests are common when non-employees require temporary permissions to perform critical tasks. However, granting unrestricted administrator or high-privilege access can lead to security risks, especially if permissions are not revoked after use. Organizations should integrate real-time authorization workflows that:

  • Require multi-level approvals before granting temporary elevated privileges.
  • Use adaptive authentication to validate high-risk access requests.
  • Enforce automatic time-based revocation of elevated permissions.

Key takeaways

Managing non-employee access in hybrid environments requires a proactive, structured approach. Organizations must prioritize security without introducing operational bottlenecks. Standardized onboarding, automated role adjustments, continuous monitoring, and seamless offboarding are all critical components of an effective lifecycle management strategy.  

How we can help

Managing non-employee lifecycle access is complex, but you don’t have to tackle it alone. Our consulting services can help you:

  • Assess your current non-employee identity management framework to identify gaps in security, compliance, and operational efficiency.
  • Develop a customized strategy to streamline onboarding, role adjustments, and offboarding while maintaining security across on-premise and multi-cloud environments.
  • Implement automation and policy-based governance to reduce manual processes, minimize risks, and ensure real-time visibility into non-employee access.
  • Integrate modern identity solutions such as federated access, time-limited credentials, and AI-driven monitoring to enhance security and scalability.
  • Provide ongoing support and optimization to help your organization adapt to evolving threats, compliance requirements, and business needs.

Contact us at info@anomalix.com to learn how we can help you improve non-employee lifecycle management while strengthening security in your hybrid environment.  

References

  1. Gartner, "Managing Privileged Access in Cloud Infrastructure," Gartner.com.
  2. Security Magazine, "Only 34% of Organizations Revoke System Access the Day an Employee Leaves," SecurityMagazine.com.
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