An automated system and method for knowledge transfer, agent support and performance tracking during life cycle of a business process in an outsourcing environment are disclosed. In one embodiment, knowledge information associated with the business process is captured. Further, standard operating procedures (SOPs) are created based on the captured knowledge information. Furthermore, a simulated business process is created based on the captured knowledge information upon reviewing the SOPs. In addition, agents are allowed to use the simulated business process and actual performance of the simulated business process is tracked.