Agile processes focus on facilitating early and fast production of working code, and are based on software development process models that support iterative, incremental development of software. Although agile methods have existed for a number of years now, answers to questions concerning the suitability of agile processes to particular software development environments are still often based on anecdotal accounts of experiences. An appreciation of the (often unstated) assumptions underlying agile processes can lead to a better understanding of the applicability of agile processes to particular situations. Agile processes are less likely to be applicable in situations in which core assumptions do not hold. This paper examines the principles and advocated practices of agile processes to identify underlying assumptions. The paper also identifies limitations that may arise from these assumptions and outlines how the limitations can be addresses by incorporating other software development techniques and practices into agile development environments.