Films are used as a tool for teaching cross-cultural and intercultural concepts in higher education and in corporate settings. However, the processes and outcomes of using films in intercultural training and education have not been systematically researched. This paper discusses the results of a collaborative project involving faculty and students from two universities, a large public university in the Midwestern United States and a private university in India. The goal of this action research project was to further develop a methodological approach to using a feature film, "Outsourced," in teaching cross-cultural concepts to graduate students, and to understand how different cultural contexts affect the effectiveness of the use of films. The project involved development and implementation of the new approach and research on the factors affecting the effectiveness of using films in cross-cultural training.