An update is currently being deployed (first for First release tenant) to provide Administrative Units (AU) capabilities to Azure AD.

AU capabilities are basically the equivalent of the Organizational Unit on Active Directory. This is going to deliver better delegated administration experience, like delegating administration to specific set of users/groups instead of delegating full Azure AD.

This means you will be able to delegate administrative users/groups management to your regional IT team to manage only their related objects.

IMPORTANT NOTE at this point, this capability does not seem to be available using the Azure AD portal, you need to use PowerShell to setup these AU’s and manage the delegation on these AU’s

See https://docs.microsoft.com/en-us/powershell/azure/active-directory/working-with-administrative-units?view=azureadps-2.0 for sample scripts to provision/manage AU’s

Enjoy