Hi nnraja,
If you want to assign less local permission to the user account on the TFS server
Yes you can do it. But there are some restrictions.
TFSSetup account is in the local admin group of the server - box.
After installation the TFSSetup account is in the TFS administrator group.
From TFS installation guide
You cannot move TFSSetup account from the local admin group.
There should be one TFS admin account with local admin power on the server box which can be used to add and remove other TFS admin accounts.
A Team Foundation Server administrator must be a member of the following groups:
a. Share Point Administration group in Share Point Central Administration.
b. SQL Server Reporting Services Content Manager
c. SQL Server Reporting Services System Administrator
More: Team Foundation Server Administrator Permissions
a. Share Point Administration group in Share Point Central Administration.
In order to add a person in the Team Foundation Server administrator role, you must set permissions in Windows Share Point Services groups.
For detail: How to: Set Administrator Permissions for Windows Share Point Services
To manage the Share Point administration group, you must be a member of the Administrators group of the local server computer.
For detail:
Microsoft Corporation
Thanks,