backup vs. syncing contacts

I want to ensure my iPhone 4S contacts are backed up on my mac using iTunes, but do not want them to over-write the contacts in my Outlook for Mac (and I don't want the Outlook contacts to sync to the iPhone contacts; I need to maintain each contact list as separate and distinct.)

When I first connected the iPhone to the mac with iTunes, it automatically ran a backup.  I just wanted to make sure I knew where the contacts backup was stored on the mac, but couldn't find the file (researching this forum indicated it would be in a folder which doesn't exist on my mac...)  So first question is, where should that backup be located?

I'm also confused about the difference between the backup and syncing.  To ensure neither the iPhone contacts nor the Outlooks contacts over-wrote the other, for now I have iTunes set to not sync the iPhone.  And in iTunes (version 11.0.1), under the "info" page for the iPhone, I do NOT have the "Sync Contacts" box checked.  I've seen some posts here say that if I select that box, it should give me an option to WHERE I'd like to sync the contacts to: Outlook, other mail program, etc.  But I don't see that option in this new version of iTunes.

So second question is, what's the best way to ensure I keep a current backup copy of the iPhone contacts, without impacting the Outlook contacts? 

(I don't use iCloud)

Thanks...