Agile Development and Outsourcing?

Agile Development is the buzz word in software development circle throughout the world and is gaining tremendous ground locally (in Hong Kong). The promises of Agile Development is that it allow the software being developed adapts to the changing business requirements quickly and thus bring about higher return on investments to the organization. Also the increased agility allow the organization to change the direction of the software development quickly and thus reducing the risks of creating software that is already obsolete when it is done.

One thing that puzzles me is how can project based software development adopt Agile Development method? In particular how outsourcing and Agile Development interacts?

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