Guidelines for Disconnected Password Customizations
The UserPasswordDelegate interface can be customized to change the password for disconnected systems. Implement this delegate if you need to override the default behavior of generating user passwords for disconnected systems (offline systems) and configure it in sc.service.properties.xconf. By default OOTB, the password is set to username.
Sample implementation:
An example of this customization is implementation “RandomUserPasswordGenerate” to generate an initial password for a disconnected system. RandomUserPasswordDelegate generates a random alphabetic password (no numeric or special characters) for each user. To expose the password, you must customize this class further to save the passwords in a flat file on the server or in an external database, or send a mail directly to the user containing the password.
<Service context="default"
name="com.ptc.sc.services.plugins.UserPasswordDelegate">
<Option
serviceClass="com.ptc.sc.services.plugins.RandomUserPasswordDelegate"
requestor="null"/>
</Service>
* 
Since the randomly generated passwords are only alphabetic you may need to change the SC_USER_PASSWORD_HINT message in the message files for the various system languages. For example, in the en_US.js file, this message would need to be updated:
// Acceptable password hint
SC_USER_PASSWORD_HINT: "Password must contain letters, numbers
and underscores of at least 8 characters.",