We've been experimenting with several development methodologies here within the Consumer Media group at Active (the Consumer Media group is responsible for active.com). Agile methodologies promise increased quality with a renewed focus on testing and collaboration. These methodologies also help with our aggressive release schedule where we push out new features and bug fixes every three weeks.
But "Agile" is hard to do with offshore teams. Some of our development is done locally (in California and Michigan), while the rest of the development team is offshore in China. The China team is best utilized when they have well-detailed Software Requirements Specifications (SRS). Collaboration, a key component of "Agile", is difficult because of A) the time difference and B) the language barrier.
Nonetheless, we're working on creating a hybrid model that incorporates the collaborative aspects of agile development while leveraging our remote resources effectively. I'm not sure what the model and am working with various teams internally to work through it.
In the meantime I wanted to share a little presentation I put together on Scrum. Enjoy.