IPC, or Inter-Process Communication, refers to a set of methods used by different processes in a computer to communicate with each other. This is essential in operating systems where multiple processes run simultaneously, allowing them to share data and coordinate actions. Common IPC mechanisms include pipes, message queues, and shared memory. These methods enable efficient data exchange and synchronization between processes, which can be running on the same machine or across a network. By facilitating communication, IPC helps improve the performance and functionality of applications, making it a crucial aspect of modern computing systems.