The purpose of this study was to describe the software development industry in South Africa by determining the current and future trends in adopting software development methodologies. The main objective was to determine which factors influence the selection of software development methodologies and whether they are effective in delivering projects successfully within the South African context. This study found that the Agile method is the most dominant methodology adopted in the software development industry in South Africa and is also the preferred methodology to be used in the future. It is common practice for companies to adopt more than one software development methodology and the Waterfall method is the next methodology most widely used. There is little adoption of CMMI. All identified factors influence the selection of software development methodologies, however, the distinguishing factors influencing the selection of Agile methods over the Waterfall method in the South African context is team size of between one and five members, project duration of less than three months, iteration length of between two and four weeks and the use of new technology. The most important measurement of project success within the South African context is the delivery of projects on time. The majority of respondents believe that their current dominant methodology is effective in delivering projects successfully. Copyright / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted