What Is The Best Software Development Methodology in 2026?

You probably already know this but I will repeat again.

Choosing the wrong software development methodology will make your team struggle with delays, scope creep, and technical debt. 

In the new age of AI-driven development, software teams must balance speed, security, compliance, AI integration, and continuous delivery. 

So selecting the best software development methodology is now more of  a strategic business choice.

If you are looking for questions like – 

• What is the best software development methodology?
• What is agile methodology in software development?
• Which methodology fits startups vs enterprises?

This comprehensive guide will help you compare the types of software development methodologies, understand their real-world applications, and choose the best methodology for software development for your team.

So let’s get started.

TL;DR

• A software development methodology defines how software is planned, built, tested, and delivered.
• In 2026, Agile + DevOps is the most widely adopted approach for product companies.
• Scrum works best for structured sprint-based teams.
• Kanban fits continuous delivery and support teams.
• Waterfall / V-Model are ideal for regulated, fixed-scope systems.
• Spiral suits high-risk enterprise builds.
• RAD and Low-Code accelerate MVPs and internal tools.
• The best software development methodology depends on risk, compliance, speed, and business goals (not trends).

Best Software Development Methodologies (Compared)

Here are the 10 best methodologies for software development that work for small to large organizations.

• Scrum
• Kanban
• Agile
• DevOps
• Waterfall
• V-Model
• Spiral
• RAD
• Lean
• Low-code

They have been compared below.

Comparison of the best software development methodologies

Methodology	Best For	Flexibility	Documentation Level	Speed	Risk Control	Ideal Industry
Agile	Product development	High	Medium	High	Medium	SaaS, Startups
Scrum	Sprint-based teams	High	Medium	High	Medium	Tech companies
Kanban	Continuous workflows	High	Low	High	Low	DevOps, Support
DevOps	Frequent releases	High	Medium	Very High	Medium	Cloud/SaaS
Waterfall	Fixed scope projects	Low	High	Low	Medium	Government
V-Model	Safety-critical systems	Low	Very High	Low	High	Healthcare, Aerospace
Spiral	High-risk enterprise builds	Medium	High	Medium	Very High	Large enterprises
RAD	Rapid MVPs	High	Low	Very High	Low	Startups
Lean	Efficiency-focused teams	Medium	Medium	High	Medium	Product orgs
Low-Code	Business automation	High	Low	Very High	Low	SMBs, internal apps

For more details on these different methodologies, pls check the detailed section.

What Is a Software Development Methodology?

A software development methodology is a structured framework that defines how software is planned, designed, developed, tested, and maintained.

It aligns with the software development life cycle methodology (SDLC) and ensures:

• Clear communication
• Risk management
• Predictable delivery
• Quality assurance
• Resource optimization

With distributed teams, AI-assisted development, and rising cybersecurity demands, structured execution separates high-performing teams from chaotic ones.

What Is the Best Software Development Methodology in 2026?

There is no universal answer.

The best methodology for software development depends on your situation.

If You Are a Startup

> Choose Agile + DevOps.

If You Are Building a Regulated System

> Choose Waterfall or V-Model.

If You Need Continuous Delivery

> Choose Kanban + DevOps.

If You Need Fast Prototyping

> Choose RAD or Low-Code.

Most successful organizations use hybrid approaches.

10 Best Software Development Methodologies for Tech Teams

Below are the most important types of software development methodologies in 2026.

#1. Agile Methodology

As the name suggests, Agile is an iterative development approach where software is delivered in small, incremental releases. Requirements evolve through collaboration and feedback.

How Agile Works Operationally

Agile teams:

• Break work into user stories (1–4 weeks)
• Prioritize based on business value
• Deliver small increments frequently
• Collect stakeholder feedback
• Adjust roadmap continuously

Instead of long-term fixed plans, Agile emphasizes short cycles and learning.

Agile Process Example 

A SaaS startup building a project management platform:

• Month 1: Release core task management
• Month 2: Add collaboration tools based on user feedback
• Month 3: Introduce analytics dashboard
• Month 4: Optimize performance after real usage insights

✅ When to Use Agile Methodology

• Requirements are likely to evolve.
• Product-market fit is still being validated.
• Speed to market matters.
• Customer feedback directly influences feature decisions.
• Cross-functional collaboration is strong.

❌ When to Avoid Agile Methodology

• Scope must be fixed upfront.
• Regulatory documentation is required before development.
• Budget and timelines must remain strictly unchanged.
• Organization resists iterative change.

Strengths & Weaknesses of Agile

Strengths	Practical Insight	Weaknesses	Practical Risk
Rapid adaptability	Allows product pivoting mid-development	Cost predictability is lower	Budget forecasting becomes complex
Faster early value delivery	Early releases generate ROI sooner	Scope creep risk	Without discipline, backlog expands uncontrollably
Continuous customer involvement	Higher product-market alignment	Heavy reliance on product owner	Poor prioritization derails progress
Improved team morale	Teams feel ownership	Documentation may be lighter	Harder compliance auditing

Agile Is Suitable for

• SaaS startups validating product-market fit
• AI-driven applications requiring experimentation
• Mobile applications with frequent feature releases
• E-commerce platforms adapting to user behavior
• Digital transformation initiatives

_________________

#2. Scrum Methodology

Scrum is a structured Agile framework that introduces defined roles, ceremonies, and timeboxed sprints. 

It brings predictability and discipline to Agile while maintaining flexibility. Scrum emphasizes accountability, transparency, and measurable progress through sprint cycles.

Scrum works best when teams need both adaptability and structured governance.

How Scrum Works Operationally

• Product backlog prioritized.
• Sprint planning selects backlog items.
• Sprint begins (2–4 weeks).
• Daily standup ensures alignment.
• Sprint review presents working increment.
• Sprint retrospective improves process.
• Repeat cycle.

Operational success depends on:

• Accurate estimation
• Strong Product Owner authority
• Commitment protection during sprints

Scrum Process Example 

A fintech platform team plans a two-week sprint to implement multi-factor authentication. During sprint planning, tasks are estimated and committed. Daily standups track progress. At sprint end, the feature is demoed to compliance stakeholders before release. Feedback informs the next sprint backlog.

✅ When to Use Scrum

Use Scrum when:

• You have a dedicated Product Owner.
• Work can be broken into sprint-sized increments.
• Stakeholders want consistent delivery cadence.
• Teams are stable and cross-functional.
• Progress transparency is important for leadership.

Scrum is ideal for mid-sized product teams building feature-based systems.

❌ When to Avoid Scrum

Avoid Scrum when:

• Work is operationally reactive (e.g., support tickets).
• Interruptions frequently disrupt sprint commitments.
• Team size is too large (over 10 without scaling structure).
• Deliverables cannot be completed within sprint timeframes.

Scrum loses effectiveness if sprint discipline is compromised.

Strengths & Weaknesses of Scrum

Strengths	Practical Insight	Weaknesses	Practical Risk
Predictable sprint cycles	Leadership sees progress biweekly	Rigid sprint boundaries	Mid-sprint changes disrupt velocity
Strong team accountability	Clear ownership roles	Role dependency	Weak Product Owner harms prioritization
Transparency	Regular demos reduce surprises	Ceremony overhead	Too many meetings reduce productivity
Continuous improvement	Retrospective refines process	Scaling complexity	Requires frameworks like SAFe for large orgs

Scrum Is Suitable for

• Fintech applications
• Feature-driven SaaS products
• Mid-sized product teams
• Enterprise digital modules
• Agile governance environments

______________

#3. Kanban Methodology

Kanban is a continuous flow methodology that focuses on visualizing work, limiting work-in-progress (WIP), and improving efficiency. 

Unlike Scrum, Kanban does not use time-boxed sprints. Instead, it optimizes throughput and minimizes bottlenecks.

Kanban is process-optimization driven.

How Kanban Works Operationally

• Visualize workflow stages.
• Set WIP limits.
• Track cycle time metrics.
• Identify bottlenecks.
• Continuously optimize throughput.
• Deliver features when completed (no sprint boundary).

Kanban requires metric discipline for real optimization.

Kanban Process Example

An infrastructure team tracks deployment tasks on a Kanban board. By limiting “In Progress” to five tasks at a time, engineers finish work faster rather than juggling multiple incomplete items. Cycle time drops by 30%.

✅ When to Use Kanban

Use Kanban when:

• Work volume is unpredictable.
• Continuous delivery is required.
• You aim to improve operational efficiency.
• You want minimal process overhead.
• Teams resist heavy frameworks.

Kanban works exceptionally well for DevOps and maintenance teams.

❌ When to Avoid Kanban

Avoid Kanban when:

• Stakeholders require sprint-based milestones.
• Fixed delivery timelines are contractual.
• Long-term forecasting is mandatory.
• Team discipline is low (board becomes cluttered).

Strengths & Weaknesses of Kanban

Strengths	Practical Insight	Weaknesses	Practical Risk
High flexibility	Work flows naturally	No fixed deadlines	Harder stakeholder reporting
Reduces multitasking	Improves focus	Less predictability	Long-term planning is difficult
Easy adoption	Minimal role restructuring	Requires strong tracking	Without metrics, stagnation occurs
Improves efficiency	Bottlenecks become visible	May lack urgency	Tasks linger without time pressure

Kanban Is Suitable for

• DevOps teams
• IT operations
• Maintenance projects
• Infrastructure management
• Continuous improvement initiatives

____________

#4. DevOps Methodology

DevOps is not only a methodology but a cultural and operational movement integrating development and operations to automate, accelerate, and stabilize software delivery. It reduces friction between coding and deployment.

DevOps prioritizes automation and system reliability.

How DevOps Works Operationally

• Continuous Integration (CI).
• Automated testing.
• Continuous Deployment (CD).
• Infrastructure as Code.
• Monitoring and logging integration.
• Feedback loop to development.

DevOps requires engineering maturity and investment in tooling.

DevOps Process Example

Developers push new code to Git. Automated CI pipelines run tests instantly. If successful, code deploys to staging. Monitoring tools track performance. Any anomaly triggers rollback and alert systems.

✅ When to Use DevOps

Use DevOps when:

• You deploy frequently.
• Downtime directly impacts revenue.
• Infrastructure is cloud-native.
• Microservices architecture exists.
• Automation tooling is available.

❌ When to Avoid DevOps

Avoid DevOps when:

• Deployment frequency is quarterly or lower.
• Infrastructure is legacy-based.
• Cultural silos are deeply entrenched.
• Automation expertise is missing.

Strengths & Weaknesses of DevOps

Strengths	Practical Insight	Weaknesses	Practical Risk
Faster releases	Competitive advantage	High initial setup cost	Toolchain complexity
Improved reliability	Reduced production errors	Cultural resistance	Team misalignment
Automation reduces manual errors	Scales easily	Requires skilled engineers	Security misconfigurations
Continuous monitoring	Faster issue resolution	Steep learning curve	DevOps burnout risk

DevOps Is Suitable for

• SaaS companies
• Cloud-native platforms
• Microservices systems
• High-growth startups
• Enterprise digital ecosystems

____________

#5. Waterfall Methodology

Waterfall is a linear, sequential methodology where each development phase is completed and approved before moving to the next. 

It prioritizes documentation, predictability, and formal governance.

Waterfall emphasizes planning over adaptability.

How Waterfall Works Operationally

• Requirements gathering.
• System design.
• Full development.
• System-wide testing.
• Deployment.
• Maintenance.

Each phase requires approval before progression.

Waterfall Process Example

A government system first documents complete requirements. Design is finalized and approved. Development follows exactly as planned. Testing is conducted only after coding finishes. Deployment occurs after full validation.

✅ When to Use Waterfall

Use Waterfall when:

• Requirements are stable.
• Regulatory compliance is mandatory.
• Scope must be contractually fixed.
• The budget and timeline are predetermined.
• Change frequency is low.

❌ When to Avoid Waterfall

Avoid Waterfall when:

• Innovation is required.
• User feedback should shape development.
• The market changes rapidly.
• Scope ambiguity exists.

Strengths & Weaknesses of Waterfall

Strengths	Practical Insight	Weaknesses	Practical Risk
Strong predictability	Easier cost estimation	Inflexible to change	Expensive late-stage changes
Comprehensive documentation	Audit-ready	Late testing feedback	Defects discovered late
Clear stakeholder alignment	Formal governance	Slow iteration	Reduced innovation
Structured management	Suitable for contracts	Risk of requirement misinterpretation	High rework cost

Waterfall Is Suitable For

• Government systems
• Defense projects
• Banking core systems
• Enterprise ERP implementations
• Compliance-heavy environments

_________

#6. V-Model (Verification & Validation Model)

The V-Model is an extension of the Waterfall methodology that emphasizes parallel verification and validation activities for every development phase. 

Each development stage has a corresponding testing phase, forming a “V” structure. It is designed for environments where quality assurance, traceability, and compliance are critical.

Unlike Agile, the V-Model prioritizes defect prevention over rapid iteration.

How V-Model Works Operationally

• Requirements specification.
• System design.
• Architectural design.
• Module design.
• Coding.
• Unit testing (validates module design).
• Integration testing (validates architecture).
• System testing (validates system design).
• Acceptance testing (validates requirements).

Every development output must map directly to a test artifact.

V-Model Process Example

A medical device software team defines system requirements. Alongside this, they create system-level test cases. When architecture design is completed, integration test plans are prepared. Once coding finishes, testing begins at unit, integration, system, and acceptance levels each mapped directly to earlier design documentation.

✅ When to Use V-Model

Use V-Model when:

• Software must comply with strict regulatory standards (FDA, ISO, aerospace compliance).
• System failure could cause financial loss, safety risks, or legal liability.
• Requirements are well-defined and stable.
• Traceability between requirement and test case is mandatory.
• Audit readiness is a continuous requirement.

The V-Model is particularly suited for safety-critical industries.

❌ When to Avoid V-Model

Avoid V-Model when:

• Requirements evolve frequently.
• You are building consumer-facing applications.
• Speed to market is more important than formal validation.
• Iterative prototyping is required.

Strengths & Weaknesses of V-Model

Strengths	Practical Insight	Weaknesses	Practical Risk
Strong validation structure	Reduces defect escape rate	Inflexible to change	Change management overhead
High traceability	Audit-friendly	High documentation burden	Slower innovation
Risk reduction	Early test planning improves quality	Late visibility to stakeholders	User feedback delayed
Ideal for compliance	Mandatory in regulated industries	Expensive to modify scope	Rework complexity

V-Model Is Suitable for

• Medical device software
• Aerospace and defense systems
• Automotive embedded systems
• Banking core transaction engines
• Government-critical infrastructure

__________

#7. Spiral Model

The Spiral Model is a risk-driven software development methodology combining iterative development with systematic risk assessment. 

Each cycle (or “spiral”) includes planning, risk analysis, engineering, and evaluation. It is particularly effective for large, complex, and high-uncertainty projects.

Spiral prioritizes risk mitigation before full-scale investment.

How Spiral Works Operationally

Each spiral cycle includes:

• Objective definition.
• Risk identification and analysis.
• Prototype development.
• Evaluation by stakeholders.
• Planning the next iteration.

Risk analysis is the defining operational characteristic.

Spiral Model Example Process

An enterprise AI platform begins with a small prototype to validate algorithm feasibility. Risk analysis identifies scalability challenges. A second spiral addresses infrastructure scaling risks. Each iteration progressively builds the system while reducing uncertainty.

✅ When to Use Spiral Model

Use Spiral when:

• The project is large and complex.
• Technical feasibility is uncertain.
• Significant financial investment is involved.
• Risk management is critical.
• Multiple stakeholders require controlled progress.

Spiral is ideal for R&D-intensive initiatives.

❌ When to Avoid Spiral Model

Avoid Spiral when:

• The project size is small.
• The budget is constrained.
• Risk is low and requirements are stable.
• Rapid MVP launch is required.

Strengths & Weaknesses of Spiral

Strengths	Practical Insight	Weaknesses	Practical Risk
Strong risk mitigation	Reduces costly failures	High management complexity	Requires experienced leadership
Flexible iteration	Allows progressive refinement	Expensive	Budget can escalate
Early validation of feasibility	Reduces uncertainty	Not suitable for small projects	Overengineering risk
Suitable for innovation	Balances planning and iteration	Time-consuming	Slower early delivery

Spiral Is Suitable for

• AI and machine learning platforms
• Enterprise system overhauls
• R&D-heavy technology initiatives
• Large digital transformation programs
• High-investment enterprise platforms

___________

#8. Rapid Application Development (RAD)

Rapid Application Development (RAD) is a user-centric methodology focused on fast prototyping and iterative refinement. Instead of extensive upfront planning, RAD prioritizes quick builds and user feedback.

RAD emphasizes speed and flexibility over formal structure.

How RAD Works Operationally

• Requirements planning workshop.
• Rapid prototype development.
• User testing and feedback.
• Iterative refinement.
• Final deployment.

User involvement is continuous and intensive.

RAD Process Example 

A startup developing a marketplace app builds a basic prototype in three weeks. Early users test the UI and suggest improvements. The team iterates weekly, refining functionality until a viable product is ready for launch.

✅ When to Use RAD

Use RAD when:

• Speed to market is critical.
• UI/UX feedback drives product success.
• Business requirements are evolving.
• The budget is moderate but the timeline is tight.
• Stakeholders are available for continuous input.

RAD works well in startup and early-stage product environments.

❌ When to Avoid RAD

Avoid RAD when:

• System complexity is high.
• Strong architectural foundations are required early.
• Regulatory compliance demands heavy documentation.
• Scalability must be guaranteed from day one.
  

Strengths & Weaknesses of RAD

Strengths	Practical Insight	Weaknesses	Practical Risk
Fast development cycles	Ideal for MVP validation	Architectural shortcuts	Technical debt risk
High user involvement	Better UX alignment	Scalability challenges	Performance issues later
Flexible requirement handling	Quick pivots possible	Less documentation	Harder maintenance later
Reduced time-to-market	Competitive advantage	Dependency on stakeholder feedback	Misaligned expectations

RAD Is Suitable for

• Startup MVP development
• Mobile application design
• UI/UX-focused platforms
• Internal business tools
• Prototype validation projects

_________

#9. Lean Software Development

Lean Software Development is derived from Lean manufacturing principles. It focuses on eliminating waste, optimizing value delivery, and improving flow efficiency. Lean prioritizes continuous improvement and data-driven optimization.

Lean is about maximizing value while minimizing waste.

How Lean Works Operationally

• Identify value from customer perspective.
• Map value stream.
• Eliminate waste (delays, rework, excess features).
• Improve flow efficiency.
• Establish continuous improvement cycles.

Lean relies heavily on performance metrics.

Lean Software Development Process Example

A SaaS company identifies delays in QA handoffs. By automating regression testing and reducing approval layers, release cycle time drops by 40%. Continuous measurement helps refine performance metrics.

✅ When to Use Lean

Use Lean when:

• Operational efficiency is a priority.
• You want to reduce cycle time.
• Process bottlenecks are visible.
• Organization supports continuous improvement culture.
• Data-driven decision making is mature.

Lean works best in scaling product organizations.

❌ When to Avoid Lean

Avoid Lean when:

• The team lacks measurement discipline.
• Culture resists process transparency.
• Organization is early-stage and chaotic.
• Leadership does not support continuous improvement.

Strengths & Weaknesses of Lean Software Development

Strengths	Practical Insight	Weaknesses	Practical Risk
Improved efficiency	Reduced time-to-market	Requires cultural maturity	Resistance to change
Cost optimization	Waste elimination improves margins	Heavy reliance on metrics	Poor data leads to wrong decisions
Scalable processes	Prevents bloated workflows	Implementation complexity	Change fatigue
Continuous improvement	Sustainable growth	Less structured for early startups	Execution inconsistency

Lean Is Suitable for

• Scaling SaaS companies
• Enterprise digital teams
• Process-driven organizations
• Mature product teams
• Operational efficiency initiatives

________

#10. Low-Code / No-Code Development

Low-Code/No-Code platforms allow software development using visual interfaces and pre-built components instead of extensive manual coding. 

They significantly reduce development time and enable business users to participate in application building.

This methodology prioritizes speed and accessibility.

Low-Code Software Development Process Example

An HR department builds an internal leave management tool using a low-code platform. Workflow automation and reporting dashboards are configured visually without writing custom backend code.

How Low-Code Development Works Operationally

• Drag-and-drop UI creation.
• Pre-built logic workflows.
• API-based integrations.
• Rapid deployment.
• Ongoing configuration adjustments.

✅ When to Use Low-Code Software Development

Use Low-Code when:

• Internal tools are needed quickly.
• Development resources are limited.
• MVP validation is required.
• Business automation is the primary goal.
• Customization needs are moderate.

❌ When to Avoid Low-Code Software Development

Avoid Low-Code when:

• System scalability is critical.
• Deep customization is required.
• Vendor lock-in is unacceptable.
• Complex integrations are necessary.

Strengths & Weaknesses of Low-Code

Strengths	Practical Insight	Weaknesses	Practical Risk
Fast deployment	Reduced development time	Limited customization	Platform constraints
Lower technical barrier	Business user empowerment	Vendor lock-in risk	Migration difficulty
Reduced cost for simple apps	Efficient internal tools	Scalability concerns	Performance bottlenecks
Rapid experimentation	Good for MVP	Security dependency on platform	Compliance limitations

Low-Code/No-Code Is Suitable for

• Internal workflow automation
• Business dashboards
• Department-level applications
• MVP experiments
• Small to mid-scale tools
  

How to Choose the Right Software Development Methodology?

After going through the long list of different software development processes, you might be already wondering what is the right methodology for your business/team.

There is no universal best software development methodology.

The right choice depends on requirement stability, risk level, speed, team maturity, and system complexity.

Below is a single decision matrix covering all five dimensions.

Business Factor	Scenario	Recommended Methodology	Why It Fits
Requirement Stability	Fixed, clearly defined	Waterfall, V-Model	Structured phases reduce ambiguity
	Mostly stable with minor change	Scrum	Iterative but controlled delivery
	Frequently evolving	Agile	Adapts quickly to feedback
	Experimental / uncertain	Spiral, RAD	Risk-driven and prototype-focused
Risk & Compliance	Safety-critical / regulated	V-Model	Strong validation & traceability
	High financial exposure	Spiral	Risk analysis at every iteration
	Moderate enterprise risk	Scrum	Controlled sprint reviews
	Low regulatory burden	Agile, Kanban	Faster adaptation, less documentation
Speed to Market	Immediate MVP needed	RAD, Agile	Rapid prototyping & iteration
	Continuous release model	Agile + DevOps	CI/CD automation enables fast deployment
	Predictable milestone delivery	Scrum	Time-boxed sprints create cadence
	Fixed contract timeline	Waterfall	Predictable budgeting & planning
Team Maturity	Highly collaborative, experienced	Agile + DevOps	Requires strong ownership & automation
	Medium discipline	Scrum	Structured ceremonies add accountability
	Process-heavy organization	Waterfall	Formal governance alignment
	Operational support team	Kanban	Flow-based work management
System Complexity	Simple internal tool	Low-Code	Fast build with minimal engineering
	SaaS product platform	Agile + DevOps	Scalable, iterative delivery
	Enterprise transformation	Spiral	Progressive risk mitigation
	Embedded / hardware-integrated	V-Model	Validation-driven lifecycle

Final recommendations for tech teams

Very few organizations practically can actually adopt a single software development process.

Most high-performing organizations combine:

• Agile for development
• DevOps for deployment
• Lean for process efficiency
• V-Model practices for compliance validation

There is no single “best methodology for software development.” There is only the best-fit methodology for your business context.

Custom Software Development at Evangelist Apps

Choosing the right methodology is only the first step. 

Executing it correctly is what drives results.

Evangelist Apps, one of UK’s leading AI solutions & software development partner, delivers custom software development solutions tailored to:

• Startup MVP launches
• SaaS product scaling
• Enterprise digital transformation
• AI-powered application development
• Secure, cloud-native architecture builds

We use the Agile methodology to deliver solutions that meet –

• Business objectives
• Regulatory exposure
• System architecture complexity
• Long-term scalability goals
• Deployment frequency requirements

What This Means for Clients

• Faster time-to-market without sacrificing quality
• Reduced rework through structured validation
• Scalable cloud-native systems
• Secure-by-design architecture
• Sustainable engineering processes

Whether you’re building an MVP or modernizing an enterprise platform, the goal is not to “follow Agile” or “apply Waterfall.”

The goal is to build software that scales, performs, and supports long-term growth.

That is the core philosophy behind custom software development at Evangelist Apps.

Book a FREE 30-min call with Evangelist Apps to discuss your software development needs.

F.A.Qs

Q. What is a software development methodology?

A structured framework that guides how software is built, tested, and delivered.

Q. What is agile methodology in software development?

Agile methodology software development is an iterative approach focused on collaboration, adaptability, and incremental releases.

Q. What is the best agile methodology for software development?

Scrum is the most widely adopted for sprint-based teams. Kanban suits continuous workflows. 

Q. What is the best software development methodology?

It depends on project size, risk, compliance, and delivery speed requirements.

Q. How do companies choose a methodology?

They evaluate risk, compliance, budget model, team maturity, and business goals.