the timeout value is usually the time that the end system has to respond for the command was sent e.g.
Specifies the duration after which the operation times out
Default value: 60 seconds
It can also be in connections how long it is before the system will report that a connection cannot be made and report a timeout e.g.
Summary: Message[summary=Timeout occurred., detail=A request was sent to a remote peer and a response was not received prior to the specified timeout.]
The default of 3 minutes (180 seconds) allows for enough time for the response or connection to be processed.