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I have tried the same scenario in FME and I am able to get both inside and outside features ,can I get the same functionality in arcpy ?

monish tickoo
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As far as I know the "Clip" tool will only output the area inside of the clip feature. To get the area outside (original minus the clip area) you can use the "Erase" tool although it requires an advance desktop license.

If you don't have the license for the "Erase" tool there are some workarounds here: https://gis.stackexchange.com/questions/133264/subtracting-erasing-polygons-from-polygon-using-arcgis-for-desktop/133265

BigGerman
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