This actually rings true to my experience. I've been responsible for several outsourced problems, and one common factor among them is trying to get Indian programmers and PMs to just be straight with me. I've tried being direct by telling them that it's okay to tell me if something is wrong or to give me a realistic picture of progress, and I get "Yes sir, I will certainly be very honest with you, sir," but nothing changes. It's a difficult barrier. I haven't figured it out yet.