Can you please share the latest logs while performing the test connectivity for your account related email account because the logs which are shared above contains the entries related to your gmail account test connectivity. If possible please share the screen shots of your email account configuration.
Now I am able to connect to the email server. The only difference is that I was configuring the pega email account(I have installed pega 8.1 personal edition in my machine) using home internet connectivity (instead of using client intranet ). @NipunM37 try to do a network trace and see if your application server can communicate to the remote outlook server location. Sometime you might have to ask your network/app server admin team to configure a proxy for connectivity.