If I were developing embedded systems, real-time systems, safety-critical stuff or anything under a strict regulatory regime, things might be different.
One of my favorite stories is from Nancy Van Schooenderwoert's Embedded Extreme Programming: An Experience Report (PDF) and Taming the Embedded Tiger: Agile Test Techniques for Embedded Software (PDF) papers, which describe a novice programming team writing real-time software for farming equipment using agile techniques. Their delivered bug rate was astonishingly low, for example.
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