I have a total of 3200+ contacts in my 8707 which are wirelessly synchronized with my Outlook contacts. The problem is the synchronization takes a very long time if I were to create a contact in either the device or outlook.

For e.g. if I were to create a contact in my device, it will take as long as 20 minutes for it to update it in my outlook contacts and vice versa.

I have tested with 50+ contacts and the synchronization took only a few minutes. Does having a larger contact list slow down the time taken for both the device and outlook to sync?

Once the initial sync is completed - no, it should not take long to sync the new one added.