Communication from and to WebServices is performed in XML. Also the data transfer can (but need not to) be managed using XML.
It is sometimes useful to divide up XML elements into groups or so called
namespaces.
Sometimes you have an element that can have a different meaning in different contexts. A simple biology example could be a sequence element which
describes
a nucleotide sequence or protein sequence depending on context. Namespaces are used to avoid problems using the sequence element in both
ways in one document.