Outbound links are URLs that direct visitors from your website to another website on the internet.
The aim of outbound linking is to help users get further information on a topic that is not present on your website. That improves the overall user experience and helps them get a complete answer to their search query. This also provides a context to the Google bot about your content, purely on the basis of the content that is present on the outbound url you have linked to.
Outbound links can be either no-follow or do-follow and determine whether you rlink equity is passed to the target domain /page or not.