Make sure to run REGISTER ALM CLIENT on your QC-Sync Server -- The timeout can also be an error that can be addressed by registering ALM client components before using Sync Client from any PC. If you don't re-Register after a QC Server patch, for instance, this timeout can happen too. Actually, it is just not communicating -- not really timing out.
In your case of long network latency:
There IS a way to change the value for the Sync's timeout (it's not generally recommended and you need to test it because can cause performance issues on the client):
* Close all IE windows.
* Close QC/ALM Sync Client.
* Go to C:UsersAppDataRoamingHPHP ALM Synchronizer Client folder.
* Increase the value of < add key=''WebRequestTimeout'' value=''180000'' / > and save the file.
* Open Sync Client and try it again.
The value is generic for all the QC/ALM Sync's timeouts.