Hello aneil.
Thank you for using Apple Support Communities. It sounds like you're trying to edited contact pictures are not saving properly. If so, we'd like to do our best to assist you. There are some basic troubleshooting steps we'd like to recommend first. Try restarting your iPhone to see if that helps:
Restart your iPhone - Apple Support
If you have any pending updates, it would be a good step to install those updates. Just in case you do have pending updates, the resources below can guide you through the update process:
How to back up your iPhone, iPad, and iPod touch - Apple Support
Update your iPhone, iPad, or iPod touch - Apple Support
If restarting and updating don't help, we can try some other steps that might help out. Use the Photos app to edit your contacts photos. Once edited, see if you're able to apply that edited photo to your contact: Edit photos and videos on iPhone - Apple Support
Also, are you using iCloud to sync your contacts? If so, try visiting the iCloud website and select the specific contact that has the re-positioned photo. Once selected, try to edit it using the iCloud website and save your changes. See if that helps.
iCloud - Apple
Feel free to keep us posted on your results. Cheers.