The other poster has now been banned. I am assuming for pushing his own software rather than giving impartial advice.
Odd question back, is it for ease of locating your contacts that you would prefer to have them in surname order?
There are a fair few apps on the market to do with contacts so that may be one avenue of investigation open to you.
I personally use Gesture Search to find my contacts, you simply draw in the letters of the name that you want to find, so if I was looking for John Smith you could draw either a J or an S and it will list all your J's or S's. To narrow further you can then add letters. You can use this for music and apps on your phone too, but I have mine currently just set for contacts. The list appears with a green phone handset next to the name for fast calling or tap their name to take you to their contact.
Sorry not to have the perfect answer, I did read that someone had very patiently gone through and manually changed them all which is a total pain in the rear. Maybe someone else can give you some ideas.