Pseudocode is a term used to describe the process that programmers follow to outline the steps needed to solve problems in a project. It is written in a non-coding language, allowing programmers to understand what the code should do without focusing on syntax. This skill is highly valuable in becoming a proficient programmer as it goes beyond specific programming languages and can be utilized by programmers working with different languages. Pseudocode enables collaboration among programmers by providing a clear understanding of the logical flow and actions required to achieve desired outcomes.