I have been asked to give a proposal to my friend's company for why they should participate in Open Source. They use a lot of open source, but I think their current policies do not allow employees to contribute code or time. I am looking for concrete reasons such as proof it is more secure, help from outside developers finding bugs, Return on Investment, etc.
the only strong case i've heard for that is that contributing code will boost your reputation and thus improve sales. but i think that only works well if you sponsor an entire project or if you're a custom software shop looking for clients.