An enterprise is collaborating on a project with an external consulting agency. The enterprise needs to grant the external consultants access to internal applications and resources, allowing them to sign in using their own organizational work accounts while applying corporate Conditional Access policies such as multifactor authentication (MFA). Which identity solution should the enterprise use?

Microsoft Entra B2B collaboration: ### What Microsoft Entra B2B collaboration is **Microsoft Entra B2B collaboration** (formerly Azure Active Directory B2B) is a capability within external identities that allows organizations to securely share applications and corporate resources with external business partners and guest users from any other organization. ### How it meets the requirements - **External credential sign-in**: External users authenticate using their existing corporate credentials, Microsoft accounts, or federated identities, eliminating the need to issue or manage separate passwords. - **Access and security governance**: The host organization maintains complete control over corporate data by enforcing **Conditional Access policies**, such as requiring **multifactor authentication (MFA)** at the tenant or application level for guest users. - **Lifecycle and permission management**: Administrators or delegated application owners can add guest users, assign them to specific security groups, and revoke permissions at any time. ### Key advantages and capabilities - **Seamless collaboration**: Guests sign in through their home organization's identity provider while accessing authorized host resources. - **Delegated access management**: Group and application owners can invite and manage guests directly without administrative intervention. - **Granular security controls**: Organizations can define inbound and outbound cross-tenant access settings and block specific domains. - **Reduced administrative overhead**: Organizations avoid creating and managing secondary credentials for external staff. ### Why this is optimal Microsoft Entra B2B collaboration provides the exact balance of frictionless cross-organizational sharing and centralized security governance required when working with external partners.