I heard about this term from my colleague, initially I thought it would be something similar to wrapper webservice / Façade pattern implementation in which a web service composed of various other web services but after some goggling it seems to be bit different.
A Composite web service is set of web services which are orchestrated in a manner to achieve a particular business flow. Complex web services may be created by aggregating the functionality provided by simpler ones. This is referred to as service composition and the aggregated web service becomes a composite web service.
References / Read in detail
[1] - http://ceur-ws.org/Vol-313/paper5.pdf
[2] - http://www.sigecom.org/exchanges/volume_3/3.3-Benatallah.pdf
[1] - http://ceur-ws.org/Vol-313/paper5.pdf
[2] - http://www.sigecom.org/exchanges/volume_3/3.3-Benatallah.pdf
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