This thread is about army formations, as in skirmishers at the front, cavalry at the back, rather than unit formations (such as square, wedge, phalanx etc.).
Unit formations are hard-coded, however Duke John discovered a method of adapting the horde formation, which you can find here. This should allow you to create a circle unit formation (at the expense of the horde formation), but I don't know if it will allow you to have them all face outwards.
Update: There's also The_Mark's original thread where he raised the idea. While it doesn't include a tutorial per se it does include useful information if you want to get started. It was on the Colosseum and can be found here.
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