Inversion of Control (IoC) in operating systems refers to the management of control flow and resource allocation by the OS, allowing applications to run efficiently without direct management. In contrast, IoC in software development involves frameworks that control the flow of a program, enabling developers to focus on business logic rather than the underlying mechanics. The key difference lies in the context and application: IoC in OS is about system-level resource management, while IoC in software development emphasizes modularity and decoupling of components. Understanding these distinctions is crucial for effectively applying IoC principles in both domains. The discussion highlights the importance of recognizing how IoC operates differently across various fields.