The significance of using open-source software in development lies in its collaborative nature, allowing developers to share, modify, and improve code freely. This fosters a community-driven approach that accelerates innovation and reduces costs associated with software development. Open-source solutions often provide greater customization and flexibility, enabling organizations to tailor software to their specific needs. Additionally, open-source software promotes transparency and security, as users can review and contribute to the code, mitigating risks associated with proprietary solutions.