In business-to-business (B2B) environments, companies don’t just manage employees. They also rely on suppliers, distributors, brokers, contractors, and service providers — all of whom need access to critical systems. Managing these external users is called B2B Identity and Access Management (B2B IAM). Unlike workforce IAM, which is tied to a central HR system, B2B IAM must handle many different organizations, each with their own structures and processes. That makes it more complex — and far more critical to business success.
While many still see IAM as a technical concern, in reality in B2B it’s actually a strategic business decision with consequences that extend beyond merely providing secure access to resources.
According to the latest Digital Trust Index Third-Party Edition report, many organizations still face delays in onboarding external users, with nearly one in three (31%) third-party users waiting days to receive login details or system access. Only a portion of organizations benefit from automated or immediate provisioning.
Security is Now a Shared Experience
The report shows what many already suspect: the external user experience is falling short. While many organizations invest in customer-facing interfaces and internal IT modernization, the same effort isn’t applied to the systems used by suppliers, partners, contractors, and other third parties.
Too often, IAM systems are designed with IT control in mind, not ease of collaboration. The unintended result is a slow, fragmented process that weakens confidence. It signals to your partners that speed and simplicity are not your priorities. This affects how they view your brand, your processes, and your value as a trusted partner.
When asked about the biggest challenges with IAM, many organizations point to inconsistent onboarding experiences and fragmented accountability. The report highlights that nearly 69% of verification processes are digital, but ownership is divided (36% host organizations, 32% partners, and 30% shared), which adds friction and delays.
The fragmented structure often leads to silos within organizations. Different teams handle separate parts of the onboarding process without working together. This lack of coordination slows progress, causing delays that frustrate partners and hamper collaboration.
Identity Management Directly Impacts Partner Trust
B2B partnerships depend on trust. That trust is fragile, and identity management is an instrumental part of how it’s built. It may not be the whole of the partner experience, but it often determines whether collaboration starts smoothly or gets stuck in delays.
In practice, partners often face delays before they can even begin. They wrestle with repeated access issues and frequent password resets that disrupt their work. These hurdles do more than slow productivity; they breed frustration and chip away at the trust essential to strong business ties.
96% of third-party users face login difficulties with partner systems, collectively losing an average of 48 minutes per month managing access issues. Frustration is further compounded as 40% of users reset passwords once or twice a month, an avoidable burden increasing inefficiency.
Your Partners Expect Better
Manual onboarding processes, often relying on spreadsheets, emails, or ad hoc approvals, create inconsistent experiences that erode credibility.
Security is often cited as the reason for slow onboarding. Yet the report shows this is a false trade-off. Organizations prioritizing automated, centralized access control report higher security confidence and improved partner experiences.
Ironically, efforts to boost security through extra manual checks or tighter often backfire, slowing processes and frustrating users. Instead of improving safety, they push partners toward workarounds that weaken the very safeguards meant to protect them.
Meanwhile, over half (51%) of organizations admit that third-party users retain access to partner systems for days, sometimes up to a month, after they no longer need it. This creates security and compliance risks, transforming access management from a strategic asset into a liability.
IAM Gaps Slow Down Collaboration
The research highlights several points where identity management slows down collaboration with partners:
- 31% of third-party users wait more than a day to be onboarded, delaying the start of new work.
- 35% of access changes take two days to a week to complete, leaving partners unable to perform new responsibilities right away.
- 51% of organizations delay offboarding for days or weeks, increasing security and compliance exposure.
These are not isolated IT problems. They affect how quickly partners can contribute, how efficiently projects move forward, and how much confidence organizations have in each other’s systems.
The same research also shows that where processes are standardized and automated, friction decreases. Clear points of contact exist in most cases, but execution is inconsistent. Addressing these gaps is less about adding controls and more about improving consistency, speed, and accountability across the partner lifecycle.
Who Owns the Partner Experience?
IAM responsibilities are often fragmented. IT runs the tools, security sets the policies, and business units manage the relationships. The result is an uneven experience.
The research shows 69% of verification processes are digital, but ownership is split: 36% host, 32% partner, and 30% shared. 61% of organizations struggle to track partner access, and only 56% are fully confident a breach would be disclosed promptly.
In an ideal model, IT is not solely responsible for building the partner experience. Active participation from business managers is required to align access processes with real-world collaboration. Without that shared accountability, trust will continue to erode.
Where to Begin
Improving partner access starts with clarity. The research shows that while 85% of users know their point of contact for onboarding, only 38% are fully satisfied with the clarity of steps, and 46% with the overall process. Knowing where to go does not guarantee a smooth experience.
Mapping the current process — from request to provisioning, role changes, and offboarding — exposes bottlenecks and gaps in ownership. IT can provide the tools, but business managers need to be involved to define what speed and consistency should look like for their partners.
Purpose-built approaches like Delegated User Management help bridge this divide. By allowing designated business managers in partner organizations to manage their own users within defined boundaries, organizations reduce delays while retaining centralized oversight.
Progress depends on measurement. Tracking onboarding durations, access change timelines, and offboarding speed gives both IT and business leaders the insight needed to prioritize automation and remove friction.
Security Is a Business Enabler, When Done Right
While the goal is always to secure access, it needs to empower trusted relationships. The research shows that 96% of third-party users face login difficulties and 40% reset passwords once or twice a month, evidence that current practices often add friction instead of removing it. This supports growth, not just compliance.
In a time when digital trust drives revenue, the experience your partners have when they connect with your business matters more than ever.
It’s time to move identity management out of the IT basement and into the boardroom.
