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                                                                   EXHIBIT 10.32


[LOGO OF iASIA WORKS]                                [LETTERHEAD OF iASIA WORKS]


May 15, 2001


Mr. Jon Engman
3515 Monterey Ct. NE
Newcastle, WA 98056


Dear Jon,

On behalf of iAsiaWorks, ("The Company"), it gives me great pleasure to offer
you the position of Chief Financial Officer. You will be reporting directly to
Jonathan Beizer, the Chief Executive Officer of the Company. During your
employment, you agree to devote your full business time, energy and skill to
your duties at the Company. You will be responsible for administering and
overseeing, on a worldwide basis, all financial operations and implementing
policies and procedures as appropriate. You will also have those
responsibilities and duties consistent with duties customarily performed by a
Chief Financial Officer, as designated to you by either the Chief Executive
Officer or the Board of Directors, or as assigned to you by the Chief Executive
Officer or the Board of Directors from time to time.

Since we are eager for you to join us, we would like you to begin on or before
May 28, 2001.

Your main terms and conditions are set out in this document. These, and the
Company's Policies & Procedures, which you will receive, by way of our Team
Member Manual, upon your start of employment, form the further and particulars
to your employment with the Company. Accordingly, the main terms are as follows:

1.  Base Salary


    Your starting annual gross salary will be $210,000.00, less applicable
    withholdings and deductions (hereinafter "Salary") in accordance with the
    Company's payment policy. Upon your start of employment, you should refer to
    the Team Member Manual to learn more about the Company's policies and
    practices associated with performance and compensation reviews. The Company
    pays salaries on a semi-monthly basis, and as such there are 24 pay periods
    for each full year of business.

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       Direct deposit of your Salary can be arranged by the Company into your
       nominated bank account(s).

[LOGO] Place of Employment

       It is intended that during your employment with the Company you will be
       based in the Company's Burlingame, California office, however, it is
       understood that you shall travel as the Company may from time to time
       reasonably require. Additionally, the Company reserves the right to alter
       your place of employment by providing you with as much advance notice as
       is practicable and not necessarily with any form of compensation for such
       a change.

3.     Bonus

       Annual Bonus. Starting for the one (1) year period beginning May 29, 2001
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       and ending May 28, 2002, and each one (1) year period thereafter, you
       will be eligible to earn a Bonus of up to twenty-five percent (25%) of
       your Salary based upon your achievement of personal and Company
       milestones mutually agreed upon by you, the Chief Executive Officer and
       the Compensation Committee of the Board of Directors within the first
       sixty (60) days of your employment and annually thereafter. In the event
       that mutual agreement upon the milestones cannot be reached within the
       sixty (60) day period in question, the decision of the Chief Executive
       Officer and Compensation Committee thereafter in establishing such
       milestones will be final and conclusive.

4.     Stock Options

       You will be granted an option to purchase 300,000 shares of iAsiaWorks'
       common stock at the price in effect at time of approval of such grant by
       the Board of Directors of the Company (the "Option"). The Option shall be
       subject to the terms of the notice of grant and the Company's standard
       stock option agreement, which you must execute as a condition of grant.
       The vesting schedule shall be as follows: twenty-five percent (25%) of
       the shares subject to the Option shall vest one (1) year from the Vesting
       Commencement Date (as set forth herein), and one-thirty-sixth (1/36/th/)
       of the then remaining unvested shares, subject to the option, shall vest
       each month thereafter, so that all shares shall be vested forty-eight
       (48) months after the Vesting Commencement Date. For purposes of this
       Agreement, "Vesting Commencement Date" shall be the first day of full-
       time employment with the Company. Define cause as conviction of felony,
       stealing or unethical behavior

       Termination Due to Death or Disability. If your employment is terminated
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       due to death or Disability, then you, or your estate, will receive: (A)
       your Base Salary through the date of termination; and (B) payment for
       unused vacation earned through the date of termination.

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[LOGO]  Termination Following a Change In Control. If, within one year
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        following a "Change of Control," you resign for "Good Reason" or are
        terminated by the Company, or any successor entity, without cause then
        you shall immediately receive acceleration of twelve (12) months of your
        then unvested shares of the Option and a lump-sum severance payment
        equal to six (6) months of your Salary.

        Termination Outside of a Change of Control. If the Company terminates
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        your employment "Without Cause" other than within one-year of a Change
        of Control, then you shall be entitled to receive a lump-sum severance
        payment equal to six (6) months of your Salary; provided, however, that
        if (A) the Company fails, within three (3) months of your joining the
        Company, to either (i) obtain financing which results in the Company
        raising funds of $60,000,000 or more, which is considered a (ii) being
        in a fully-funded position with respect to the current business plan, or
        (ii) enters into a strategic relationship which brings to the Company
        access to funds of $60,000,000 or more; and (B) subsequent to the
        failure to satisfy the condition of either (A) (i) or (A) (ii) above
        terminates you "Without Cause," then you shall be entitled to receive,
        in lieu of any other payment from the Company, a lump-sum severance
        payment equal to three (3) months of your Salary.

        Change of Control.   For all purposes under this Agreement, "Change of
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        Control" shall mean (i) a merger or consolidation in which securities
        possessing at least fifty percent (50%) of the total combined voting
        power of the Corporation's outstanding securities are transferred to one
        entity different from the persons holding those securities immediately
        prior to such transaction, or (ii) the sale, transfer or other
        disposition of all or substantially all of the Corporation's assets in
        complete liquidation or dissolution of the Corporation.

        Termination for Cause.  For all purposes under this Agreement, a
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        termination of your employment by the Company for "Cause" shall mean a
        good faith determination by the Company's Board of Directors that your
        employment be terminated for any of the following reasons: (i)
        misconduct which damages the Company; (ii) misappropriation of the
        assets of the Company; (iii) conviction of, or a plea of "guilty" or "no
        contest" to a felony under the laws of the United States or any state
        thereof; or (iv) continued unsatisfactory performance after written
        notice from the Chief Executive Officer and a reasonable opportunity to
        cure. A termination of your employment by the Company in any other
        circumstances or for any other reason, except a termination due to
        Disability or death, will be a termination by the Company Without Cause.

        Good Reason. For all purposes under this Agreement, "Good Reason" for
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        your resignation will exist if you resign within ninety (90) days of a
        change in your position with the Company, or a successor company, which
        results in a reduction in Salary or materially reduces your duties or
        level of responsibility, provided that such reduction or change is
        effected by the Company without your written consent. A resignation
        under any other circumstance or for any other reason will be a
        resignation without "Good Reason."

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[LOGO]  Disability. For all purposes under this Agreement, "Disability" means
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        your inability to carry out your material duties under this Agreement
        for more than six (6) months in any twelve (12) consecutive month period
        as a result of incapacity due to mental or physical illness or injury.

        Employment with the Company is not for a specific term and can be
        terminated by you or by the Company at any time for any reason, with or
        without cause.  Any contrary representations which may have been made or
        which may be made to you are superseded by this offer.

5.      PTO & Holiday Entitlement

        You will be entitled to fifteen 15 paid-time-off (PTO) days in your
        first year of employment, provided you work full-time throughout this
        period. Accrual for paid time off begins as your start date of
        employment with the Company. Accrual works from the basis of completed
        pay-periods. In order to accrue a full pay period's rate of personal
        paid time off, you must have worked the full duration of said pay
        period. The Company also operates a rising scale PTO accrual system for
        two (2) years of service or more.

        The Company also pays for eleven (11) public holidays per year. These
        days are outlined in the Company's Team Member Manual. Sick leave will
        be provided in accordance with the Company's policies.

6.      Health Plans and Flexible Benefits Plan

        The first of the month following 30 days from your date of hire, you
        will be eligible to participate in the Company's Health Plan, covering
        Medical, Dental and Vision insurance. Plan documentation will be
        provided to you at the start of your employment, as well as associated
        enrollment documentation.

        As of October 1, 2000 a Flexible Benefits Plan is provided by the
        Company, based on the rules as governed by the IRS. The Flexible
        Benefits Plan provides you with opportunities to set aside tax-free
        earnings for certain insurance plan premium(s), as well as for out-of-
        pocket expenses related to certain Medical and Dependent care costs not
        covered through insurance plans.

7.      401(k)

        As of your start date, you will be eligible to join the Company's 401(k)
        Plan. Details of this plan and the options for investments and
        investment planning can be obtained on your first day of employment.

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8.     Other Benefits


[LOGO] The Company offers a generous range of diverse benefits. Highlights of
       additional benefits to those identified above that you will enjoy through
       your employment with the Company follow.

       .    Accidental Death & Dismemberment Insurance
       .    Life Insurance
       .    Long-term and Short-term Disability Insurance (Short-term Disability
            Insurance is effective as of October 1, 2000)
       .    Tuition Reimbursement for qualifying team members
       .    Team member Referral Program
       .    Team member Discounts for certain, specified items

       Our Team Member Manual shows the full range of benefits for employment
       with the Company and stipulates all eligibility and other qualifying
       factors. For insurance-based benefits, you are encouraged to consult the
       specific plan description document for full terms and conditions.


9.     Travel Allowance and Expenses

       All reasonable expenses required to live and travel and perform your
       duties as Chief Financial Officer will be reimbursed by the company. In
       addition to the foregoing expenses, the Company agrees to pay the
       following reasonable expenses, in compliance with its standard policies,
       until the earlier of (i) your permanent move from Seattle, Washington to
       the San Francisco/Bay Area in California or (ii) five (5) months from the
       Vesting Commencement Date (the "Reimbursement Period"):

            .    Weekly round-trip, economy class airline tickets between San
                 Francisco, CA and Seattle, WA;

            .    Two round-trip, economy class airline tickets between Seattle,
                 WA and San Francisco, CA for your spouse for the purpose of
                 searching for housing in the San Francisco/Bay Area;

            .    Temporary housing expenses, which may be reflected by either a
                 temporary apartment arrangement or hotel expenses during the
                 Reimbursement Period; and

            .    Car rental payments, including applicable insurance, during the
                 Reimbursement Period.

       If any of these allowances or expenses are deemed taxable to you for
       Federal or State Income Tax purposes, then the Company will provide you
       with additional compensation to cover any tax liability owed, so that the
       effect of such

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[LOGO]   allowances or expenses is tax neutral to you. The additional
         compensation will be provided should there be additional tax liability
         to you.

10.      Insurance

         The Company shall, to the extent permitted by law, include you, so long
         as you are still employed by the Company, under any directors and
         officers' liability insurance policy maintained by the Company for its
         directors and officers. The coverage shall be at least as favorable to
         you in amount and each other material respect as the coverage of other
         directors and officers covered thereby. This obligation to provide
         insurance shall survive expiration or termination of this Agreement
         with respect to proceedings or threatened proceedings based on acts or
         omissions occurring during your employment with the Company or with any
         affiliated company. Please be advised that during your employment with
         the Company you will be deemed a Section 16 officer and will be subject
         to the applicable rules and regulations.

11.      Housing Allowance and Car Assistance

         The Company has determined that, for the first four (4) months
         following the Reimbursement Period (the "Initial Housing Allowance
         Period"), you shall be entitled to receive, while residing in the San
         Francisco/Bay Area, a maximum monthly housing allowance in the amount
         of $6,500 per month, net of taxes (the "Initial Housing Allowance");
         i.e., the Company will provide you with additional compensation to
         cover the incremental Federal and State Taxes that accrue to you as a
         result of this housing allowance so that its effect is tax neutral to
         you. Immediately following the Initial Housing Allowance Period, for
         the next eight (8) months (the "Subsequent Housing Allowance Period,"
         which, together with the Initial Housing Allowance Period, the
         "Allowance Period") you shall be entitled to receive, while residing in
         the San Francisco/Bay Area, a maximum monthly housing allowance in the
         amount of $4,000 per month, net of taxes (the "Subsequent Housing
         Allowance," which, together with the Initial Housing Allowance, the
         "Housing Allowance"). The Company acknowledges, and you agree, that the
         intent of the Housing Allowance is to ensure that you are in no worse
         or better position financially, with respect to housing, than you would
         be absent your relocation and decision to join the Company. In light of
         the foregoing, the Housing Allowance will be adjusted downward, net of
         taxes, if the difference between your current mortgage and your monthly
         housing cost after relocation (the "Housing Differential") is less than
         $4,000. If the Housing Differential is less than $4,000, then the
         Housing Allowance will equal the Housing Differential plus $2,500 (net
         of taxes) during the Initial Housing Allowance Period and will equal
         the Housing Differential in the Subsequent Housing Allowance Period.
         For illustration purposes, if your current mortgage is $3,000 and your
         monthly rent after relocation is $6,000 for comparable housing, then
         your Housing Allowance will equal $5,500, net of taxes, in the Initial
         Housing
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        Allowance Period and will equal $3,000 in the Subsequent Housing
        Allowance Period.

[LOGO]  For clarification purposes, it is understood and agreed that after the
        Allowance Period, you shall no longer be entitled to receive a housing
        allowance from the Company. If you are terminated Without Cause at any
        point during the Allowance Period, the Company agrees to pay you for
        your actual housing expenses, which payments shall not exceed $4,000 per
        month, net of taxes, and shall be supported by documentation provided by
        you to the Company, from the date of such termination until the end of
        the Allowance Period. Notwithstanding the foregoing, the Company shall
        also grant you a housing deposit allowance (the "Housing Deposit
        Allowance"), of up to $10,000, which shall be utilized solely for the
        purpose of providing your landlord a housing deposit pursuant to the
        terms of your lease agreement. Please be advised that typically under
        California Law, a lease deposit may not exceed two (2) months rent. You
        shall provide the Company with appropriate documentation evidencing the
        amount of such Housing Deposit Allowance. Upon the earlier of (i) the
        end of the term of your lease; or (ii) one (1) year following the
        Allowance Period, you shall remit back to the Company the full amount of
        the Housing Deposit Allowance. The provisions of this paragraph 11 shall
        not be applicable if, subsequent to the Reimbursement Period, you and
        your family have not permanently relocated to the San Francisco/Bay
        Area, however, each of you and the Company agree that if such a
        situation were to arise, both parties will negotiate in good faith to
        reach an alternative arrangement with respect to relocation and housing
        allowances.

12.     Relocation

        To facilitate your relocation, you will be entitled to receive a
        reimbursement of up to $30,000 for the actual costs associated with your
        move, including the following:

        .    All reasonable costs incurred in relation to Employee's move to the
             San Francisco/Bay Area in California, whether incurred before or
             after the date of this Agreement;

        .    Removal and Relocation of Households Goods; and

        .    Travel to Relocate (including, but not limited to, one-way economy
             class tickets for the purpose of relocation for the number of
             family members involved or, if you decide to relocate via ground
             transportation, gas mileage and all reasonable lodging and food
             expenses incurred during the trip).

        If any part of the reimbursement is deemed taxable to you for Federal or
        State Income Tax purposes, then the Company will provide you with
        additional compensation to cover any tax liability owed, so that the
        effect of such reimbursement is tax neutral to you. The additional
        compensation will be provided should there be additional tax liability
        to you.

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[LOGO]   You must retain for your records, and for documentation to be provided
         to the Company in connection with the reimbursement of these relocation
         expenses, all receipts related to your move. In addition to the
         foregoing, the Company also agrees to pay any fees incurred during the
         Allowance Period directly associated with your transfer and/or
         registration of any automobiles in the State of California.

13.      Proprietary and Confidential Information Your acceptance of this offer
         is contingent upon the execution of the Company's Proprietary
         Inventions and Information Agreement ("PIIA"), a copy of which is
         attached hereto as Exhibit A. Within five days of the commencement of
         your employment, you will execute the Company's standard form of PIIA,
         providing for your trade secret protection of the Company's proprietary
         and confidential information.


14.      Non-Compete and Outside Activities. You agree that, while serving as a
         full-time employee of the Company, you will not engage in any
         activities which are not in the best interests of or are in competition
         with the Company.

15.      Arbitration. Any controversy between the parties hereto involving the
         construction or application of any terms, covenants or conditions of
         this offer letter, or any claims arising out of or relating to this
         offer letter or the breach thereof or with your employment with the
         Company, will be submitted to and settled by final and binding
         arbitration in Palo Alto, California, in accordance with the Model
         Employment Dispute Resolution Rules of the American Arbitration
         Association (the "Rules") then in effect. Any arbitrator shall be
         selected pursuant to such Rules and judgment upon the aware rendered by
         the arbitrators may be entered in any court having jurisdiction
         thereof.

Should you wish to accept this offer of employment, I would ask you to sign and
date below in confirmation of your understanding and agreement to the terms set
out herein. Once you have done so, please return a copy with your signature to
me so that we can begin work on making your transition here a most successful
one. You should keep the other copy for your personal files.

You understand that this agreement does not constitute an employment contract
and that your employment is at-will. This means that you do not have a contract
of employment for any particular duration or limiting the grounds of your
termination in any way. You are free to resign at any time. Similarly, the
Company is free to terminate your employment at any time for any reason. You
understand that while personnel policies, programs and procedures may exist and
be changed from time to time, the only time your at-will status could be changed
is if you were to enter into an express written contract with the Company
explicitly promising you job security, containing the words "This is an express
contract of employment", and dually signed by an Officer of the Company. The
above and following

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[LOGO] language contains our entire agreement about your at-will status and
       there are no oral or side agreements of any kind in relation to your
       employment status with the Company. Jon, we all feel that you are an
       outstanding candidate who will fit in well with iAsiaWorks' culture and
       have the skills and drive to help move the Company along on the growth
       path we have chartered to date. We all greatly look forward to working
       with you. Please do not hesitate to contact me if you should have any
       questions.


                                      Regards,

                                      /s/ Jonathan Beizer

                                      Jonathan Beizer
                                      Chief Executive Officer

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[LOGO] I am pleased to accept this position under the above terms and
       acknowledge that I shall receive a copy of the Company's Team Member
       Manual, on which my employment is further contingent, on my first day of
       employment.

       I also note that I will attend new-hire orientation, where I will learn
       more about the Company's Benefits Program, as well as receive and
       complete enrollment documentation and other forms of employment
       documentation. I also note that I should bring the following items with
       me to my orientation:

       .    The original, hard-copy, signed version of this Offer Document.
       .    Necessary documents indicating my status to work in the U.S.
       .    My bank details for direct deposit of pay; including a blank/voided
            check.
       .    Details of any of my dependents who I may wish to cover under the
            Company's Benefit Program - Full Names, Social Security Numbers,
            Dates of B irth.
       .    Details of any beneficiaries (Primary and Secondary) who I may wish
            to indicate for Life Insurance Cover purposes - Full Names, Social
            Security Numbers and Current Full Addresses of Residence.


       Signed:  /s/ Jon Engman
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       Print Name:  Jon Engman
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       Date of Signature: 5/29/01
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       Vesting Commencement Date:  May 29, 2001
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