This paper analyses the readiness of agile project management (APM) implementation in software development companies in the context of Palestine; by assessing changes required for transforming projects into agile and challenges and risks involved in the transformation, in addition to exploring APM success factors. A case study methodology using mixed methods technique was adopted. Semi-structured interviews and questionnaire data from 67 different companies were used. Although data analysis shows that there is a high degree of implementation of APM practices, the results show that software development companies have a moderate level of ability to deal with challenges and risks of the APM processes. A managerial framework was developed to enhance software development companies' working in the context of a Middle East country to properly adopt the practices of APM. The framework identifies determinants of a successful APM process realisation that will help software development companies maintain a sustainable growth.