A veteran of the IT wars in Asia, Mark Wang remembers the desperate struggle to recruit information-technology specialists in China 15 years ago. "It was nearly impossible. We had to look to foreign-language institute grads to find anyone who even spoke English," says Wang, now general manager of Sybase Inc. in the Asia-Pacific. These days, Sybase, a global software company, finds the pool of well-educated entry-level talent in China is getting bigger. "It's easier to find good people, not just in Beijing, but also in outlying provinces."

Although the situation may have improved, there's now stiff competition among hi-tech multinationals for Chinese IT talent. And despite improvements in education, most companies still choose to spend heavily in time and money to train local staff up to their standards and in their specific technologies. But unlike Indian companies also facing a tight IT labour market, multinationals in China aren't offering office swimming pools or golf courses. So far they're finding the magic of their cutting-edge technology is lure enough.

However, competition for good staff is getting even sharper with China's upcoming membership in the World Trade Organization, which has multinationals falling all over each other to beef up their presence in China. Canada's Nortel Networks, for example, has announced plans to add 200 design engineers to its staff of 300 in its Chinese R&D joint venture, citing an expected boom in China's telecoms industry.

Electronics giant Motorola has just finished what it calls the largest investment in China by the electronics industry -- a new chip-fabrication plant (or "fab") in Tianjin, 145 kilometres east of Beijing. With production scheduled to come to market next year, the fab will employ about 2,400 people.

In preparation, Motorola requires "the most experienced semiconductor engineering professionals," says company spokesman Scott Stevens. So it sent 100 employees, designated as "critical" talent, to Motorola fabs in the United States for about a year; Motorola will not reveal the cost of that ambitious training scheme. Not only did the experience give the Chinese employees crucial skills, it also tied them more closely to the company. Stevens says the Chinese engineers found that "working alongside the experience and different ideas of the U.S. professionals instilled a feeling of being part of a winning global team."

Sybase's Wang acknowledges that Chinese staff are eager to participate in training outside the country: "An overseas trip is always an attraction. It's not only an opportunity to learn, but a great opportunity to network." However, sending one top-level Chinese employee to Sybase University in California for a three-week session costs around HK$50,000 ($6,400). So Sybase prefers to cut costs by bringing company trainers to its four Chinese plants whenever possible.

Cisco Systems finds that despite improvements in Chinese education -- the system is now turning out enough entry-level people -- there's still a shortage of experienced IT workers. "Our company insists on the best and we are starting from a very shallow pool," says Charles Kuan, human-resources director for Cisco Systems in China.

Not only does Cisco run its own "virtual university," with on-line courses open to all employees, but at any given time, some 10% of its 300 Chinese engineers might be out of the country -- in Australia or Singapore -- being trained for specific projects. Including travel expenses, Cisco spends some $3 million training its Chinese staff every year. "We think we could do even more," says Kuan.

With all these investments in precious staff, hi-tech multinationals must also guard against poaching by competitors. Motorola, for example, offers generous perks, including stock options, payments toward housing and cash rewards for bright ideas to try to hang on to the people it trains.

But keeping hi-tech staff in China is not all about money. "Material incentives are taken for granted," says Kuan. "Leading the pack solely in terms of compensation is not a long-term sustainable strategy. We have to attract people by something else, by offering them access to technology and opportunities they can't get anywhere else."

Wang says Sybase tries to pay "neither higher nor lower" than the market rate for IT specialists. Instead, he says, "we keep them motivated because they work on cutting-edge technology. They are motivated because they know they can make a difference."