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The video tutorial discusses the concept of Statement of Work (SOW) in project management, focusing on its definition and importance in project or service contracts. SOW outlines the terms, objectives, scope of work, deliverables, timelines, and other expectations between the customer and the vendor. It is a document that defines what needs to be done and serves as a guide for the project. SOW is crucial for clarifying the requirements and responsibilities of both parties involved in the project.