The above discussion as to using the Google Contacts site to back up your contacts & groups is moot if you own an HTC Android phone running v 2.3.3 & HTC Sense 2.1. After spending hours researching and backing up my Contacts, my HTC Inspire kept creating duplicates on the phone after contacts were uploaded on the Google site. Even when I cleared the duplicates, overnight and with the Accounts & Sync Background Data [ ] checked, which has to be checked to download app updates, the phone "automatically" checked the [ ] under People/View and Google, and duplicated all or most all of my contacts from the Google site back into the phone. When I unchecked the Google [ ] the duplicates still remained. So I deleted all contacts from the Google site, and closed my People & Contacts apps a couple times and this eventually cleared the duplicates in the phone memory.
I'm still looking to backup my Groups & contacts. I checked out the Groupy app Jefboyardee suggested, but the reviews were not great. The other apps I saw were DW Contacts, Dial Pro, Contact Editor Pro, and Ex-Dialer & Contacts. I need to re-review these for the best one for groups and backup.
This issue is even more critical for me as I use the phone as an "assistive device" for memory (cognitive) problems from a brain injury some years ago. The Coleman Institute in Colorado several years ago thought Android would be the future in assistive cognitive devices. But from my experience in replacing this broken HTC phone, it doesn't appear they get it. I've written web content on assisitive tech, and a few years ago was encouraged to write a proposal on assistive phones for the industry. But I never did. I will tell hands down your Contacts app is your phone's most important app. I'm very creative with it. I'm disappointed with HTC and Android over this OS flaw.
If you have any thoughts on a best backup & groups solution, please share. Thanks.