Software engineering is an approach to developing software that attempts to treat it as a formal process more like traditional engineering than the craft that many programmers believe it is. In proposed methodology, extended-agile Iterative model is used. In extended iterative-agile model first step is to finalize the requirement, architecture and design. Development phase begins as soon as requirements design and architecture is completed. Development phase follows agile method. Scrum masters ensures smooth development as per requirement and accommodates new changes, since architecture and design is already in place a scalable architecture allows new changes to be accommodated.