The visually larger Input and Output component represent service’s HTTP request and response. You will want to place your service logic in between the two components.
Input and Output are two special components of Data Service REST job. Their attribute editors allow alternative access to the REST endpoint input and output configuration eliminating the need to switch to the Endpoint Configuration tab.
The Input component has no other use for now.
If you connect any edge to a port on Output component, all records flowing through this edge will be used as response payload. Before sending, the records are automatically serialized using one of the automatic serialization formats (JSON, XML or CSV) according to Endpoint Configuration.
For detailed information about data serialization see the Generating response content section.