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Although a wide consensus exists about potential business benefits derived from Competency based HR management practices, reality shows that in practice, Competency Management deployment cases are scarce and difficult to implement. This HR business related problem directly affects IT Software industries, both in HRMS applications development and consultancy related services. Market indicators reflect 'unbalance' between potential organizational benefits and actual applications deployment. In this context, defining useful, business-oriented Competency Frameworks has become an important challenge for many organizations willing to progress along through continuous HRM improvement processes. This paper addresses the major issues underlying this Competency Management unbalance. A new business-oriented approach proposing an alternative, scope extended methodology is outlined in this publication, after field validation and wide acceptance from experts in functional HR management and IT Systems professionals from various large size organizations. Therefore, the findings resulting from this research work have both theoretical and practical implications in helping IT management in defining efficient HRMS Competency based applications and deployment strategies.