Origin and history of outstanding

late 14c., "at rest, motionless," also "permanent, lasting, not transient," present-participle adjective from stand (v.). The meaning "having an erect position, upright" is from 1570s; that of "done while standing" is from 1630s. The sense in standing army (c. 1600) is "permanent." Standing ovation is so called from 1902.

in Old English a common prefix with nouns, adjectives, adverbs, and verbs, "out, outward, outer; forth, away," from out (adv.). The use was even more common in Middle English, and also with the senses "outer, outside, on the outside, from without, external, externally; apart; greatly, extremely; completely, thoroughly, to completion." Other senses of out that extended into the use as a prefix include "beyond the surface or limits; to the utmost degree; to an explicit resolution."

In composition out has either its ordinary adverbial sense, as in outcast, outcome, outlook, etc., or a prepositional force, as in outdoors, or forms transitive verbs denoting a going beyond or surpassing of the object of the verb, in doing the act expressed by the word to which it is prefixed, as in outrun, outshine, outvenom, etc. In the last use especially out may be used with almost any noun or verb. [Century Dictionary]