It specifically improves computer performance and speed when working with larger files.
It increases the access to files in hard disk by re arranging them on hard disk,reduces the time to read and write files to the Disk
Should I use software for defragmentation?
NO, there is no need for a software for this this function is built in every operating system.

How to use disk defragmentation tool in Windows XP,7,8 or later
Windows xp
Press Windows + R. You will see Run dialog. type dfrg.msc and hit enter. You will see a window shows that in below screenshot.Windows7
Go to Start -> Control Panel ->Click System and Security -> Click Defragment your hard drive (under Administrative Tools). You will see a window shows that in below screenshot.Windows 8 or Later
window 8 and later versions has search feature. Just search with the word Defragment. You will see Defragment and optimize drives app. Click on that you will see below screen.Sources
https://www.whatvwant.com/disk-defragmentation/