Soon after his arrival at Bombay his remarkable energy attracted notice, and in July 1820 he became acting adjutant to the first battalion of the 12th regiment on its embodiment at Poona, an experience which he found to be of immense advantage to him later in his career.

Originally a puny lad, and for many years after his arrival in India subject to constant attacks of sickness, Outram seemed to gain strength by every new illness, eventually acquiring a strong constitution and "nerves of steel, shoulders and muscles worthy of a six-foot Highlander.

On his return from a short visit to England in 1843, he was, with the rank of brevet lieutenant-colonel, appointed to a command in the Mahratta country, and in 1847 he was transferred from Satara to Baroda, where he incurred the resentment of the Bombay government by his fearless exposure of corruption.

[2] Later that year, the Governor-General's wife, Lady Canning was unimpressed with him when he stayed at Government House in August 1857: she recorded that ‘he is a very common looking little dark Jewish bearded man, with a desponding slow hesitating manner, very unlike descriptions — or rather the idea raised in one’s mind by the old Bombay name the "Bayard of the East" .

On arriving at Cawnpore with reinforcements, Outram, in admiration of the brilliant deeds of General Havelock, conceded to him the glory of relieving Lucknow, and, waiving his rank, tendered his services to him as a volunteer.

During the advance he commanded a troop of volunteer cavalry, and performed exploits of great brilliancy at Mangalwar, and in the attack at the Alambagh; and in the final conflict he led the way, charging through a very tempest of fire.

In the second capture of Lucknow, on the commander-in-chief's return, Outram was entrusted with the attack on the side of the Gomti, and afterwards, having recrossed the river, he advanced through the Chattar Manzil to take the residency, thus, in the words of Colin Campbell, putting the finishing stroke on the enemy.

When, on account of shattered health, he returned finally to England in 1860, a movement resulted in the presentation of a public testimonial, and the erection of statues in London (by sculptor Matthew Noble) and Calcutta.