Many software development firms are now adopting the agile software development method. This method involves the customer at every level of software development, thus reducing the impact of change in the requirement at a later stage. In this article, the principles of the agile method for software development are explored and there is a focus on its effectiveness in the industry today. The article also describes the two agile development methods used today in the information technology industry – Extreme Programming (XP) and Scrum. The major differences between the two methods are examined. This article is based on a recent study and on feedback from developers in the information technology industry.