File compression reduces the size of exported files like documents, images, or datasets by using algorithms to remove redundant information or encode data more efficiently. Lossless compression (e.g., ZIP) allows perfect reconstruction of the original file, while lossy compression (e.g., JPEG) permanently discards less noticeable data to achieve much smaller sizes, suitable only for audio, images, or video where some quality loss is acceptable.

For example, you might compress a large folder of exported project reports into a ZIP archive using built-in OS tools like Windows Explorer or macOS Finder before emailing it. Similarly, exporting a high-resolution photograph from editing software often includes a quality slider that applies lossy JPEG compression to reduce its storage footprint for web use or faster sharing.

Compression significantly saves disk space, accelerates file transfers, and reduces bandwidth usage. However, lossless compression offers modest size reduction on already optimized files, while lossy compression degrades quality irreversibly. Tools must be compatible for decompression by the recipient. The processing overhead can be noticeable for very large files. Choosing the right method (lossless for critical data, lossy where quality loss is tolerable) is key to effective implementation.