I have had a lot of experience with this. First of all, set the CNAME record to be as follows:
www->ourcompany.outsystemsenterprise.com
Then in Service Center for the referenced environment (likely production given the subdomain), navigate to Administration -> SEO URLs -> Site Rules. From here you can set the site based on URL. In this case, your setting would probably look like this:
- Base URL: www.application1.com
- Root Application: application1 (or whatever the module is called)
Give the DNS changes up to 48 hours before expecting the resolution to work anywhere in the world and you will be golden!