I have created a special group to allow only creation of space without giving them full administration access. Is there a way, I can also allow them to manage the third party plugin's (microsoft teams connector) without giving them full admin access?
You don't.
Administrators are in charge of add-ons. Space creators can create spaces. Space admins look after their own spaces.
If an add-on has been written so that its config is an admin task, it remains with the admins. If it has been written to give space admins the right to configure it, then they can.
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