This paper challenges the economic bias found in the literature on industry training by suggesting a different approach to doing skill formation research in the IT industry — one that takes into account the interaction over time of intentions, context, process, and action around accredited onthe- job training schemes. The literature on participation with work-place based training schemes, is reviewed. The review indicates a need for process research to complement existing research in the field. To demonstrate, the paper presents the findings of an empirical study into eight small and medium sized enterprise (SME’s) experiences when deciding to participate with a formal and accredited on-the-job training scheme for the first time. The Grounded Theory generated from the empirical findings suggests that the intentions and actions of owner/managers, the processes they enact, as well as the social context into which they are implemented, critically influence what decisions are associated with on-the-job IT skilling.