What is an exit option in an IT career

Question

In management consulting, iBanking...there is a popular term called Exit option. What exactly does this refer to in layman's terms?
Also in an IT career, is the term relevant? For a programmer/ project manager for example?

Answer 1

I think you mean "exit plan" or "exit strategy" and not an "exit option." Vinoth has a good definition of "exit option." People starting "start ups" usually have "going public" as one exit plan, or selling out to investors as another exit plan. If the business doesn't do well enough, wind it up and shut it down is yet another exit plan.

For an IT career, an "exit plan" is some alternative career for when you get sick and tired of IT, or can no longer get work in the field. I'm in my 50s and while programming has been a great career, age discrimination is widespread and out of my control. In the past 11 years, I've spent almost 2 years out of work. I started late with 401k (1) savings (2) and it looks like I'll have to work into my late 60s in order to afford any sort of retirement (3).

In my case, I have several plans for a post-IT work life. Generally I refer to them individually and collectively as "Plan B." Some developers get an MBA and plan to move into management for their exit strategy.

Notes:
1 - 401k plans were originally designed by legislature to supplement existing pension schemes and thus were never intended to replace existing retirement schemes. However, as companies have continued to push all retirement risks and costs onto workers, a 401k is better than nothing.
2 - You will discover that not all companies offer 401k plans, so if you have one, save while you can.
3 - Based on family longevity, my expiration date will be in my early 70s.

Answer 2

From Investopedia .

If company XYZ decides to expand their number of operating factories by 10 over five years, an exit option would allow them to abort this operation despite contractual obligations with suppliers and land developers. If, after 2 years, expansion remains a good idea, XYZ can continue to do so. However, if economic conditions have changed, the exit option provides the opportunity to stop further efforts at no cost.

I am not sure what you mean by "exit option in IT career" . Do you mean to say that if IT career isn't lucrative after 5 years , you will quit and join an investment bank ?