KPO is the method of outsourcing with the knowledge and information related work is carried out by workers in different company or subsidiary of the same organization. This subsidiary may be in the same country or an offshore location to save costs with other resources. Categories resort to knowledge process outsourcing when they have a shortage of skilled professional and have opportunity to hire the skilled workers earning lower wages in another location for lower overall cost. KPO has been divided into three categories like Low, Medium, High. In this paper we are going to discuss how the knowledge transfer is going to happen in the knowledge Process outsourcing.