I finally found a work around to synchronize Outlook 2011 with Google Calendar!
First I set up Sync Services to sync my Outlook 2011 calendar to iCal calendar. I make sure that I have all the categories that I want to have in my Outlook and create some event for each category so that it gets created in the iCal calendar as well.
Then I downloaded this software called "Spanning Sync 3", installed it and set it up with my Google account (Spanning Sync is a paid software with a 15 day trial if you want to try it first). After that, I can do the setup for syncing the iCal with the Google Calendar by mapping the categories in iCal to the categories in the Google account.
What happens is that when you create, modify or delete an event in Outlook, this event gets synced to iCal which in turn gets picked up by Spanning Sync and syncs to Google Calendar. Similarly, any changes in Google Calendar gets synced to iCal via Spanning Sync which in turn gets synced back to Outlook. This solution does not involve CalDAV to sync to Google Calendar.
Hope this will help someone else out there :)