Agile methodologies have been primarily used to help in product development, but slowly this trend is catching for software project management as well. These methodologies are driven on the principles of Agile Manifesto.
The Agile Manifesto highlights over:
Indiviudals rather than processes.
Response to change
These methodologies address the one basic problem which causes the many projects to fail, that is involvement of the users/stakeholders. Waterfall is predictive, Agile is adaptive and the Risk is minimized by frequent release of working software.
Agile methodologies comprise of Extreme Programming, DSDM etc.