Multi factor authentication can be enable on O365 by following below link.

https://support.office.com/en-us/article/set-up-multi-factor-authentication-for-office-365-users-8f0454b2-f51a-4d9c-bcde-2c48e41621c6

There is a special set of configuration required when multi factor authentication is enable on O365, microsoft provide a tool app password for third party app to connect when MFA is enabled please use this tool to configure passoword for credentials used in DS-NOC for backup purpose.

Please use link given below to configure app password.

https://support.office.com/en-us/article/create-an-app-password-for-office-365-3e7c860f-bda4-4441-a618-b53953ee1183