BANGALORE: A few months ago, a major Bangalore-based infotech company lost out on a $8 million contract. The company was expecting a business delegation to visit India before signing the contract, but 15 days before the date set for the deal, the meeting was abruptly called off.

The same team went to China instead. When the Indian firm investigated the matter, it discovered a gaping hole in its security. The computers of several of its top executives had been compromised by Chinese hackers and privileged information leaked to a Chinese competitor, who walked away with the deal by quoting a lesser price.