Agile methods have evolved as a bottom-up approach to software development. However, as the software in embedded products is only one part of development projects, agile methods must coexist with project management models typically of the stage-gate type. This paper presents a qualitative case study of two large independent software system projects that have used eXtreme Programming (XP) for software development within contexts of stage-gate project management models. The study is comprised of open ended interviews with managers as well as practitioners, followed by a structured, fully traceable, qualitative analysis. We conclude that it is possible to integrate XP in a gate model context. Key issues for success are the interfaces towards the agile subproject and management attitudes towards the agile approach
