'Version Control' is a system that tracks changes to files over time, enabling the recall of specific versions later. In software development, it's a vital tool that allows developers to manage codebase changes, collaborate on projects, and maintain a history of modifications.

Version control systems (VCS) are either centralized, like Subversion (SVN), with a single repository for change storage, or distributed, like Git, allowing developers to work on individual repository copies and merge changes back to the main repository.

Version control is indispensable for complex software projects with multiple contributors, enabling branching, merging, conflict resolution, and the ability to revert to previous states if needed.

In summary, version control is fundamental in software development for managing code, facilitating team collaboration, and ensuring the integrity and history of a project.