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The video tutorial discusses the concept of a Statement of Work (SOW) in project management, explaining that it is a document outlining the terms and objectives of a project or service contract. It includes the scope of work, deliverables, timelines, and expectations between the customer and the vendor. The SOW serves as a roadmap defining what needs to be done and helps ensure alignment between both parties. It is an essential part of project management as it clarifies the project's objectives and expectations.