Outlook email, Copilot Chat and Teams calendar functions faced disruptions.
Microsoft blamed unexpectedly unavailable servers and said it was not aware of any malicious activity.
IndiGo's email support is affected; customers have been directed to its website and app.
Microsoft Outage: Company Says Yet To Identify Any 'Malicious Activity'
Exchange Online-dependent features across Microsoft 365, including Outlook email and Teams, are affected, while other functionalities remain operational
Summary
Microsoft's workplace services, including Outlook and Teams, remained disrupted for users in India and elsewhere on Friday, a day after a global outage began, with the company saying it was still working to pinpoint the cause and is not aware of any malicious activity behind it.
Microsoft's service health page showed "service degradation" for Microsoft 365 business and enterprise customers as well as its consumer products, as of an update at 11.16 am India time on Friday.
The company said it was pursuing multiple workstreams to pinpoint the underlying cause of a traffic influx and to recover its backend servers.
"As of now, we are not aware of any malicious activity that is causing this incident," it said, adding that full details of the root cause would be shared in a post-incident report once the issue is mitigated.
In India, airline IndiGo said its email support services were impacted due to the global Microsoft service disruption, and it may not be able to receive customers' emails.
All other support channels remain available, the airline said in a post on X on Friday, asking customers who need urgent assistance to reach out to 6E Skai through its website or mobile app.
Features of Microsoft 365 services that interact with Exchange Online and email are affected, while those that do not depend on it remain functional.
Users may be unable to access their mailboxes through Outlook on the web and Outlook desktop, and email delivery may be delayed, it said. Users may also be unable to load Copilot Chat or receive responses in the web and desktop apps, and Copilot experiences may be unable to access work data such as email, calendar, and files.
On Teams, most core functions such as joining calls and meetings, group chats and channel messages are not affected, but calendar-related tasks such as scheduling and viewing meetings may fail, Microsoft said.
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Indian users began flagging problems around 11 pm on Thursday, according to outage tracker website Downdetector.
The number of outage reports on the website moderated overnight; they spiked again after 6 am on Friday.
The company said on X that the strain on its systems came not from a rise in traffic but from "a number of servers being unexpectedly unavailable".
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