I think both can simultaneously be true in a typical outsourcing scenario. The incentive for an outsourcing agency is billable hours and not rocking the boat. Couple that with the different management cultures in the US and India, and it makes perfect sense that the American company would see the quiet and overly optimistic compliant attitude as not being street smart, while the Indian company sees that they are keeping the gravy train rolling and making bank off fat and somewhat stupid American companies.