Yes, you can create groups in Outlook. I can't remember whether those sync back to Gmail Contacts or not.
I believe that groups created in Gmail do sync to Outlook, but I could also be wrong about that. I don't have Go Contact Sync Mod set up on this machine to check.
Brian - Windows 10, 64-Bit, Version 21H1, Build 19043
It is the function of creative men to perceive the relations between thoughts, or things, or forms of expression that may seem utterly different, and to be able to combine them into some new forms--the power to connect the seemingly unconnected.
~ William Plomer