Collapsing items is different than collapsing the C1OutlookBar control. C1OutlookBar provides a draggable splitter bar between the Item Content region and the Item Buttons region. When the splitter bar is dragged downward, items collapse into the Collapsed Item Panel.
Notice in the following image, when the splitter bar is dragged downward, the Tasks item collapses into the collapsed item panel.
You can have the C1OutlookBar open with items appearing in the Item Buttons and certain items collapsed in the Collapsed Item Panel. Use the FirstOverflowIndex property to determine which items should be sent to the Collapsed Item Panel based on their index.
For example, in the previous image, the Tasks item was the third item in the C1OutlookBar. If we set the FirstOverflowIndex property to 2, any items after the first two, which are considered the overflow items, are sent to the Collapsed Item Panel.
You can set the FirstOverflowIndex property in XAML:
<c1:C1OutlookBarFirstOverflowIndex="2">
Or set it in the Visual Studio properties window.