The term Web services describes a standardized way of integrating Web-based applications using the XML, SOAP, WSDL and UDDI open standards over an Internet protocol backbone. XML is used to tag the data, SOAP is used to transfer the data, WSDL is used for describing the services available and UDDI is used for listing what services are available. Used primarily as a means for businesses to communicate with each other and with clients, Web services allow organizations to communicate data without intimate knowledge of each other's IT systems behind the firewall. 

A directory called UDDI (Universal Description, Discovery, and Integration) defines which software system should be contacted for which type of data. So when one software system needs one particular report/data, it would go to the UDDI and find out which other systems it can contact for receiving that data. Once the software system finds out which other systems it should contact, it would then contact that system using a special protocol called SOAP (Simple Object Access Protocol). The service provider system would first validate the data request by referring to the WSDL file, and then process the request and send the data under the SOAP protocol.
Web services are used for a variety of applications, but the most common is for reusing code and connecting existing programs. The web service method can help developers segment applications into components that can be used and reused for various needs. For example, more than one program might need a conversion tool or a reporting function. This is possible due to web services’ universal communication protocols.
Web services allow different organizations or applications from multiple sources to communicate without the need to share sensitive data or IT infrastructure. All information is instead shared through a programmatic interface across a network. This interface can then be added to a GUI, like a web page, to deliver specific functionality to users. Due to this, web services are not specific to one programming language or operating system and do not require the use of browsers or HTML.
"All the standard Web Services works using following components:" ... the problem with this answer is that it suggests that web services do or must operate within the SOAP/WSDL mechanism. This is inaccurate. Representational State Transfer (REST) is another very popular paradigm for implementing web services. Some major websites have deprecated their SOAP services in favor of REST web services. – scottb Jul 7 '15 at 15:50
Now we discussed in the previous topic about WSDL and how it contains information on what the Web service actually does. But how can a client application locate a WSDL file to understand the various operations offered by a web service? So UDDI is the answer to this and provides a repository on which WSDL files can be hosted. So the client application will have complete access to the UDDI, which acts as a database containing all the WSDL files.
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Now we discussed in the previous topic about WSDL and how it contains information on what the Web service actually does. But how can a client application locate a WSDL file to understand the various operations offered by a web service? So UDDI is the answer to this and provides a repository on which WSDL files can be hosted. So the client application will have complete access to the UDDI, which acts as a database containing all the WSDL files.
A web service is any piece of software that makes itself available over the internet and uses a standardized XML messaging system. XML is used to encode all communications to a web service. For example, a client invokes a web service by sending an XML message, then waits for a corresponding XML response. As all communication is in XML, web services are not tied to any one operating system or programming language—Java can talk with Perl; Windows applications can talk with Unix applications.
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Web services are a type of internet software that use standardized messaging protocols and are made available from an application service provider’s web server for use by a client or other web-based programs. Web services can range from major services such as storage management or customer relationship management (CRM) down to much more limited services such as the furnishing of a stock quote or the checking of bids for an auction item. The term is sometimes also referred to as application services.
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