As mentioned previously the outdoor unit is installed outside the room to be air conditioned in the open space. In outdoor unit lots of heat is generated inside the compressor and the condenser, hence there should be sufficient flow of the air around it. The outdoor unit is usually installed at the height above the height of the indoor unit inside the room though in many cases the outdoor is also installed at level below the indoor unit.
The outdoor unit contains the important parts of the split AC like compressor, condenser, expansion valve etc. Let us see these parts in more details: