I am currently working on a non-profit project hosted at Launchpad.Net. Although it is a large ERP-size project instead of several small projects, I don't see why it wouldn't work for you. Of course, as other posters have pointed out, exposing the source is only one part of successfully running open projects.

Cloud is another example of the same. Read vendor's ad's replacing the word "cloud" with "service center" or "network" as appropriate and watch the magic go away. Read it to your boss and see his common sense come back online (unless, of course, you are being paid big bucks for the magic, then hide this and run away! run away!)