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It is a short form for "servo-loop". Are you familiar with the term "closed-loop"?
Here is what wikipedia says:
A servomechanism, sometimes shortened to servo, is an automatic device that uses error-sensing negative feedback to correct the performance of a mechanism.
The term correctly applies only to systems where the feedback or error-correction signals help control mechanical position, speed or other parameters. For example, an automotive power window control is not a servomechanism, as there is no automatic feedback that controls position—the operator does this by observation. By contrast the car's cruise control uses closed loop feedback, which classifies it as a servomechanism.
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