What Is External Identity Management
in IAM?

External Identity Management (also called Federated Identity Management) refers to allowing users from outside an organization’s internal directory (like Active Directory or an internal IAM system) to authenticate and access resources without creating and maintaining separate internal user accounts.

Instead of storing their credentials locally, the organization trusts an external identity provider (IdP) — such as Google, Microsoft Entra ID (Azure AD), Okta, Ping, or a partner’s SAML-based system — to verify users’ identities.

Purpose

Simplifies
user onboarding/offboarding for external users (partners, contractors, customers).
Reduces
administrative overhead — no need to manage external accounts locally.
Strengthens
security and compliance — credentials remain managed by the external provider.
Enables
Single Sign-On (SSO) and Federation across systems.

External Identity Management Process
(Step-by-Step)

Example Flow Using SAML or OIDC Federation:
1. User Accesses Resource

The user tries to access an application or cloud service (the Service Provider).

2. Redirection to Identity Provider

The SP redirects the user to the configured external IdP for authentication (e.g., Okta, Google, Azure AD).

3. Authentication at IdP

The user enters credentials on the IdP’s login page.The IdP authenticates them using its own method — password, MFA, biometrics, etc.

4. Assertion/Token Issued

Once authenticated, the IdP generates an assertion (SAML) or token (OIDC/JWT) containing :
- User identity information (claims)
- Signature and timestamp
- Optional role or group mappings

5. Assertion Sent to SP

The assertion/token is sent back (via browser redirect or API call) to the Service Provider (IAM system).

6. Token Validation

Achieve zero trust security with automated controls

The SP validates:
- The signature (to ensure it’s from the trusted IdP)
- The expiration time
- The audience (intended recipient)
- Any attributes required for authorization

7. Access Granted

Achieve zero trust security with automated controls

After successful validation, the SP:
- Creates a temporary session for the user
- Assigns permissions based on roles, groups, or claims
- Logs the authentication event

Core Concepts

Core values that shape our approach to every client relationship and
project delivery.
Identity Provider (IdP)

The external service that authenticates users (e.g., Azure AD, Google Workspace, Okta).

Service Provider (SP) or Relying Party (RP)

The application or IAM system that relies on the IdP for authentication.

Federation

A trust relationship between the IdP and SP to exchange identity information securely.

Authentication Protocols

Standards such as SAML 2.0, OpenID Connect (OIDC), and OAuth 2.0 enable identity federation.

Assertion / Token

A digitally signed statement (SAML assertion or JWT token) confirming that the user is authenticated.

Claims / Attributes

User details (e.g., name, email, role) passed from IdP to SP during login.