How maintain user data/email etc for external contractor set up as user to be deactivated

How maintain user data/email etc for external contractor set up as user to be deactivated

For a couple of years we have had an external contractor setup with a user account and interacting with us through several Zoho applications such as Desk, Projects, CRM etc. We are using Zoho ONE and have these applications configured.

We now longer have any association with that individual but do not wish to lose all the emails logged against CRM deals, accounts, Desk tickets, Project tasks/Bugs etc.

My understanding is that we can deactivate that user and all this detail will remain in place AND we can use that User licence assigning it to a new Contractor..

As we have no communication with the former contractor, getting POP3 access to their email so we can take backups is not reasonable.

Is the process of simply deactivating the old user and adding a new one sufficient and is there anything that we should be aware of by way of any data or other information we may lose?

It would be so much better if the whole process of deactivating users and the results of such action was detailed in the user guides because this is a critical aspect of running any business and Zoho really only gives minimal detail on how this should be managed and what a user needs to be aware of.
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