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Web container threads exhausted

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We have a portal application(websphere potal server) that makes atleast 3 webservice calls and each call takes almost 60 seconds to respond ,
With this setup after we increase the load to 60+ concurrent users, all Webcontainer threads (configured to 40)are consumed immideatly and Application is not responding. Do anyone have any suggestion on what can be done, other that increasing the system resources..?
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Do you control the web services also? My first thought was, why is the web service taking so long to complete? Also, 40 seems like a relatively small number of threads for a web container to run - is this running on a shared server or otherwise resource constrained?
Don't get me started about those stupid light bulbs.
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