Borthwick's men enjoyed an impressive 2025, finishing second in the Six Nations before earning a 2-0 series victory in Argentina and going through the November Tests unbeaten.
That included an impressive 33-19 success over the All Blacks as they ended the year in third position in the World Rugby rankings, just behind New Zealand.
Some ultimately believe that the Red Rose are currently the second-best side in the game, even if that is not yet official, but they did not face the back-to-back world champions in 2025.
Instead, England and the Springboks will go head-to-head in the first round of the Nations Championship in South Africa during the mid-year internationals.
"England aren't yet the finished article, even if they are now ranked third in the world behind South Africa and the All Blacks. Whatever the rankings say, I think England are the Championship's second-best team behind France," Woodward wrote in his Daily Mail column.
"As such, it wouldn't be a disaster if they didn't lift the title. But what England must do is prove they can win big games away from home. That is the next step in their evolution.
"England can't be considered potential World Cup winners until they have beaten big teams in their own backyard. The next World Cup is in Australia in 18 months - a long way from the comforts of Twickenham.
"The Nations Championship game away to double world champions South Africa on July 4 is just an awesome fixture for England. Playing the Springboks away a year out from the World Cup is exactly the sort of challenge that will show where England are.
"Good teams win regularly at home. Great teams can win anywhere in the world. Right now, England are a very good team. They're not great yet, but they certainly can be."
Borthwick has put together a talented squad of players who could well take them into the 2027 World Cup, but there are still some selection dilemmas.
The head coach will have a big choice to make at centre where plenty of individuals are putting their hand up for the Six Nations.
"England have quality across the board, but now is the right time for Borthwick to start to nail his selection colours to the mast. We should be able to say what England's first-choice team is by the end of the Six Nations," Woodward wrote.
"The area still to be sorted is the centre pairing. England have the players, but there is still confusion around who starts. I'd continue with Tommy Freeman at outside centre.
"I've found it interesting to see Freeman there for Saints against both Bath and Harlequins. England have so many different options that Borthwick is in a fortunate position.
"Selection will always be the No. 1 skillset of any head coach, so Borthwick has to get the inside centre position right. Fraser Dingwall, Seb Atkinson and Ojomoh are all options. Ollie Lawrence is a wonderful player too and will be in the midfield equation."
The former England boss also wants Borthwick to end the Marcus Smith experiment with the Harlequins fly-half regularly being used at full-back.
"I'd like to see George Furbank back at full-back. He offers a ball-playing presence that Freddie Steward can't and I've always said Marcus Smith just isn't a 15 at World Cup level," Woodward added.
"Smith has been struggling in a poor Harlequins team, but even on top form he isn't an international full-back and England considering him there is doing him no good."
England white-ball captain Harry Brook has been fined by the England and Wales Cricket Board following an altercation with a bouncer in New Zealand in October.
Australia stumbled to a five-wicket victory in the final Ashes test at the Sydney Cricket Ground on Thursday to reclaim the iconic urn via a comprehensive 4-1 scoreline.
England captain Ben Stokes heaped praise on his Australian opposition after losing the final Ashes Test by five wickets in Sydney on Thursday.
Retired Springbok Steven Kitshoff has defended his former teammate and fellow World Cup winner Willie le Roux after recent criticism.
