Maybe you should go Discussion-Apple to look for what is iTunes user directions about how to backup your iphone.
Other than there are also a tool called Contacts Tool search iphone applications,and it will help u a lot if u want to transfer the contacts to computer.Like Out2003 or Outlook2007...
1. In Outlook, choose Tools > Options.
2. Click Other and then click Advanced Options.
3. Select COM add-ins and select the iTunes sync add-in and click OK.
4. Click Apply and then continue with the steps below.
1. In Outlook, choose Tools > Trust Center.
2. In the Categories pane, click Add-ins.
3. In the Details pane, locate the iTunes add-in in the "Inactive Application Add-ins" list.
4. In the Manage box, click COM Add-ins, and then click Go.
5. In the COM Add-Ins dialog box, select the iTunes sync add-in.
6. Click OK.
Besides,if you are always frustrated the directions of iTunes and Outlook.I want to give your advice to try out other professional transfer contact software.As far as i concerned,you can download the trail version
of iPhone Transfer Contact
for free,which can help you back up your iPhone contacts along with contact photos to computer as a file (either txt or antc).
Hope you have a wonderful time.