Simplified Guide to External Sharing in SharePoint, OneDrive, and Microsoft Teams

Posted at 14:26h in Blog, General, Managed IT Services, Microsoft 365 by Nithin DG 0 Comments

External sharing is a powerful feature in Microsoft 365 that allows businesses to collaborate securely with people outside their organization. Whether you’re managing documents in SharePoint, sending files via OneDrive, or working with guest users in Microsoft Teams, understanding how external sharing works—and how to configure it correctly—is crucial.

What Is External Sharing in Microsoft 365?

External sharing refers to the ability to give access to your organization’s files and resources to people outside of it. This can include partners, clients, vendors, or consultants. Microsoft 365 provides robust sharing capabilities through SharePoint, OneDrive, and Teams, all of which are backed by powerful security and access control features.

SharePoint External Sharing Settings: How It Works

Before you begin sharing, it’s essential to configure the correct SharePoint external sharing settings. These settings are managed at both the organization level and site level.

How to Configure External Sharing in SharePoint:

Go to Microsoft 365 Admin Center.
Navigate to SharePoint Admin Center.
Select Policies > Sharing.
Choose from four options:

Anyone (most permissive)

New and existing guests

Existing guests only

Only people in your organization (no external sharing)

Tip: For sensitive data, consider using “New and existing guests” to ensure authentication.

How to Share a SharePoint Folder with External Users

Sharing a folder from SharePoint with external users is a straightforward process.

Steps to Share a SharePoint Folder:

Navigate to your SharePoint document library.
Select the folder you want to share.
Click on the Share icon.
In the sharing dialog, choose Specific People.
Enter the external user’s email address.
Set permission levels (View or Edit).
Click Send.

This method ensures that users only get access to the specified folder and nothing more.

Configure Microsoft 365 External Sharing Like a Pro

Master Microsoft 365 external sharing with this simple guide for SharePoint, OneDrive & Teams. Keep your data secure.

External File Sharing with OneDrive

OneDrive simplifies external file sharing for individual users. When a user shares a file, OneDrive checks the organization’s external sharing policies before allowing access.

How to Share Files from OneDrive:

Open OneDrive and locate your file.
Click Share.
Choose specific people or anyone with the link (if allowed).
Set editing permissions.
Enter the recipient’s email and click Send.

You should confirm that your administrator has not limited sharing to “People in your organization only”.

Office 365 Shared Folder with External Users via Teams

Microsoft Teams integrates deeply with SharePoint and OneDrive, allowing users to share documents directly in channels or chats.

How to Share Files with External Guests in Teams:

Add the external user as a guest to your team.

Upload or select the file in the Files tab.

Share it directly in the conversation or via link.

Ensure the external user has proper permissions via SharePoint.

Important: External users must accept the invitation and sign in with a Microsoft account to access shared content.

Best Practices for Secure External Sharing

Always use “Specific People” sharing when possible.

Enable expiration dates and password protection for shared links.

Audit shared links regularly using the Microsoft 365 Compliance Center.

Educate employees about the risks of over-sharing sensitive data.

Frequently Asked Questions

How do I stop sharing a SharePoint file with an external user?

Go to the document, click “Manage Access,” and remove the user’s permission or disable the shared link entirely.

Is it safe to share Office 365 shared folders with external users?

Yes, if the SharePoint external sharing settings are configured correctly. Use guest access, restrict permissions, and enable tracking.

Can I see who accessed a shared file in SharePoint or OneDrive?

Yes. Use the Audit Logs in the Microsoft 365 Compliance Center to view detailed access history and sharing activities.

Conclusion

Understanding how to share a SharePoint file with external users, manage Office 365 shared folders, and configure secure external file sharing is essential for modern collaboration. By setting the right SharePoint external sharing settings and adopting security-first practices, organizations can collaborate effectively without compromising data integrity.

Whether you’re sharing a project proposal or onboarding a vendor, Microsoft 365 tools like SharePoint, OneDrive, and Teams offer robust solutions for secure and seamless external collaboration.

“Need help with secure external sharing in Microsoft 365? Contact our experts today for guidance and hassle-free setup.”