There are three options for removing contacts that you've exported from your device:
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Go to Settings, select the email account, and turn the Save Contacts slider to the Off position.
Exported contacts (from iCloud or saved locally/directly) will be removed from your device's Contacts app.
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Delete your email account from Outlook for iOS.
Notes:
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Turn off Save Contacts before deleting Outlook for iOS. It may take several minutes to remove contacts. The device must be on with Outlook running until this task is completed.
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If the Outlook for iOS app is deleted from your device before changing the Save Contacts slider to the Off position, exported contacts will not be removed from iCloud or the device. Again, please note that removing contacts may take several minutes and the device must be on with Outlook open in order for it to complete this task.
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Delete an individual contact from Outlook for iOS by navigating to the contact card and selecting Delete Contact.