Indian software industry had a phenomenal growth in the last decade and in spite of worldwide recessionary tends in the software industry is expected to play a much bigger role in the new millennium in the growth of Indian economy. Competencies for professionals in the performance improvement field have received considerable attention in recent years. Defining and measuring competencies is crucial to maximizing potential and unlocking superior performance. Competencies provide a clear and integrated set of dimensions against which performance can be described and measured. A well-designed competency framework provides the link between behaviors, skills and attributes required by the individual and the tasks required in a job. A framework that is used as the foundation of an organization’s talent management strategy provides the link between human resources and tangible business outcomes. . In this article the data was collected form 445 employees from the top leading software companies from Chennai i.e. CTS,HCL and TCS, and their competencies where studied in depth to bridge the gap in the deficient so that it would help the employees to outperform themselves Improving individual and organizational performance through competency assessment. KEYWORDS :Introduction, Review of literature, Objective of the study,Research methodology,Findings and suggestions, Conclusion.