First of all, you cannot target a specific area and reduce fat in that area alone through exercise. You can, however, reduce your overall fat through reduced calories and exercise, which will eventually get rid of that unwanted fat (saddlebags) on the outer thighs.
In the mean time, while you are waiting for the fat in that area to be reduced, you can perform some exercises to tone the muscle hiding beneath that fat! Here are a two of my favorites:Side walking with bands or tubing- with bands or tubing around your ankles, feet shoulder width apart, knees slightly bent facing forward. Remember to keep head and chest up with belly button pulled in. Step with one foot to the side as far as comfortable, and then bring the other foot along. Be careful to keep the hips square and the upper body with good posture. Take 10-15 steps, the repeat in the other direction so your muscles are balanced!
Side lying leg lift- Lay on your side. You can lay with your head all the way to the floor or on your elbow with your hand supporting your head, whichever is more comfortable. Top leg straight, bottom leg slightly bent. Pull your belly button in, and make sure there is a straight line from your chest to your toes. You will want to hold this position throughout the movement to target that muscle. Keeping your knee & toes pointing forward, raise the top leg as high as comfortable, then return to starting position and repeat 10-15 times. Turnover and do the other side!