Sync merges ALL my contact groups onto iPhone

I have my Outlook set up with 4 sets of contacts. The main one that I use at my desktop everyday is just called Contacts, but I have 3 other groups with different names. What they share is that I rarely need to use them. They are either specific to a topic/activity, or they are in a file of "Seldom Used" because I just don't really need them at my fingertips any longer. My iPhone, though, mergers all of them into one big, fat contact list on my phone. Is there a way to only sync with my current, active Contacts file and ignore the others? If so, how do I get rid of all the contacts that are already in my iPhone?

Hi Winston Churchill,
Thank you for answering my question, now I know that only iCloud contacts are synced with iCloud.  Going forward, how can I make sure that when I create a new contact that it is included in the iCloud group.
My iphone is backed up (synced) to PC at work so all my contacts are saved in that PC. Can you help me understand what you mean by "If your iOS device can be synced with your PC, sync all your contacts to your contact application and move them between groups there."  Can you tell me how I can move the contacts between the groups? Sorry this is all so new to me and I am so lost!! I dont know what the contact application is....  I must sound so dumb. I'm really not in other areas in my life - LOL.
Thank you for taking the time to help me.
Dee Gines

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