plugin time out issue

hi, i have created a plugin and a web service

the plugin will call the web service however the web service will process long time (long enough to make the plugin throw error after sometime).

i have the below questions:

1. does the CRM 2011 plugin has time out limitation? note that the instance is on premise ( not online), and the plugin runs asynchronous ( should be ran at server)

2. if yes, then how to increase the time out limit of CRM 2011 plugin ?

3. if no, then is everything okay after i increase the time out of the web service ( i think it can be configured in the IIS)?

thanks.

a