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JPG is a commonly used method of lossy compression for digital photography (image). The degree of compression can be adjusted, allowing a selectable tradeoff between storage size and image quality. JPG typically achieves 10:1 compression with little perceptible loss in image quality. JPG compression is used in a number of image file formats. JPG is the most common image format used by digital cameras and other photographic image capture devices; it is the most common format for storing and transmitting photographic images on the World Wide Web. 

These format variations are often not distinguished, and are simply called JPEG. JPG is often used on digital camera memory cards, but RAW or TIF format may be offered too, to avoid it. The JPG file is wonderfully small, often compressed to perhaps only 1/10 of the size of the original data, which is a good thing when modems are involved.

While, PSD is a proprietary file format used to create and edit images in Adobe Photoshop. It is a widely accepted format as it supports all available image types – Bitmap, RGB, Duotone, Grayscale, Indexed Color, CMYK, Lab, and Multichannel.

The maximum size of a PSD file (with file extension of ‘.psd') is 30,000x30,000 pixels and may be saved with 16 bits per color channel. PSD image files may be opened with Adobe Photoshop or Photoshop Elements on Windows; and Adobe Photoshop, Photoshop Elements, or Apple Preview on Mac OS.

PSD to JPG conversion is the conversion of data from the Adobe suite to that of JPG and is the best option out there in the market these days if you wish to grow your business without really expanding and spending on infrastructure and hiring on roll employees. Basically, converting PSD to JPG is very complex and tedious process. As to convert from PSD to JPG services require deep knowledge, experience and skills to perform this task in an effective and efficient way is the need of the hour.

PSD format for any particular website is definitely not an easy task. Moreover, in PSD format the data organization can become very time consuming. Therefore, for easy accessibility of data and to improve file management PSD to JPG conversion is very important.

Source : http://www.articlesbase.com/file-types-articles/psd-to-jpg-4497229.html