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Why Australian & US Companies Choose Philippine Developers: The 96% English Proficiency Advantage

Jomar Montuya
October 7, 2025
13 minutes read

The Philippines ranks 20th globally for English proficiency. India ranks 60th.

That's a 40-position gap on the EF English Proficiency Index 2023—and it matters more than you might think when building software teams.

Here's what that difference looks like in daily Slack conversations, code reviews, client calls, and technical documentation. And why Australian and US companies increasingly choose Philippine developers when communication quality is non-negotiable.

The Data: English Proficiency by the Numbers

EF English Proficiency Index 2023 (Global Rankings)

Philippines:

  • Global rank: 20th out of 113 countries
  • Score: 578 (High Proficiency band)
  • Asia rank: 2nd out of 23 countries
  • Proficiency level: High

India:

  • Global rank: 60th out of 113 countries
  • Score: 504 (Moderate Proficiency band)
  • Asia rank: 5th out of 23 countries
  • Proficiency level: Moderate

For comparison:

  • Singapore: 3rd globally (635 - Very High)
  • Malaysia: 27th (566 - High)
  • Pakistan: 56th (508 - Low)
  • China: 82nd (464 - Low)

Source: EF English Proficiency Index 2023, based on testing of 2.2 million adults worldwide

Philippine Language Statistics

Official literacy data:

  • Overall literacy rate: 96%
  • English speakers: 90%+ of population (64 million people)
  • Official languages: Filipino and English
  • Education system: English-medium from elementary school onward
  • Business language: English is the primary business communication language

The $38.7 Billion Proof Point

Here's the strongest validation of Philippine English proficiency:

Business Process Outsourcing (BPO) Industry (2024):

  • Industry value: $38.7 billion annually
  • Workforce: 1.3 million employees
  • Global market share: 10-15% of worldwide BPO
  • Primary services: Customer support, technical support, back-office operations
  • Key clients: Fortune 500 companies, US healthcare, Australian enterprises

This isn't theoretical. 1.3 million Filipinos are hired specifically because Western companies trust them to communicate with their English-speaking customers. Daily.

If communication quality was an issue, this industry wouldn't exist at this scale.

Why the Gap Exists: Language History & Education

English as Official Language

The Philippines is one of the few Asian countries where English is an official language (alongside Filipino).

Historical foundation:

  • English introduced during US colonial period (1898-1946)
  • Became official language of government, education, and courts
  • Never changed post-independence
  • Embedded in Constitution as official language

Contrast with other countries:

  • India: English is an "associate official language," but 22 regional languages dominate
  • China: English is foreign language taught in schools
  • Vietnam: English is foreign language, not official

English-Medium Education System

Philippine education structure:

  • Elementary school (Grades 1-6): English-medium instruction for Math, Science
  • High school (Grades 7-12): English-medium for all major subjects
  • College/University: Almost entirely English-medium
  • Technical training: IT, engineering programs taught in English
  • Textbooks: Majority are in English

Result: By the time Filipino students graduate, they've been learning in English for 12-16 years. Not just studying English as a subject—using it as the language of instruction.

Cultural Exposure to English

Media consumption:

  • Movies: Hollywood films shown in English (subtitles rare)
  • TV shows: US/UK content popular, often without dubbing
  • Music: Western pop music dominates radio
  • Internet: Filipinos consume English content primarily
  • Social media: High engagement with English-language platforms

Workplace reality:

  • Business emails: Written in English
  • Corporate meetings: Conducted in English
  • Documentation: Technical docs, reports in English
  • Software development: Code comments, commits, PRs in English

What This Means in Daily Software Development

Let's move from statistics to practical realities.

Code Reviews & Technical Documentation

Example 1: Pull Request Comments

Philippine developer (typical):

"I've refactored the authentication middleware to use JWT refresh tokens
instead of session cookies. This reduces database load by 40% during peak
traffic. I've added unit tests covering the edge cases we discussed—
expired tokens, concurrent refresh attempts, and revoked credentials.

One concern: the token refresh endpoint now needs rate limiting. Should
I implement this in this PR or create a separate ticket?"

Clear. Precise. Proactive. Natural business English.

Compare to non-fluent developer:

"I change authentication. Now is JWT, not session. Tests added.
Should limit rate?"

Both convey information. But one requires zero mental translation. The other forces you to decode intent.

Client Calls & Stand-Ups

Philippine developers on client calls:

  • Speak naturally without translating in their head
  • Ask clarifying questions without hesitation
  • Explain technical concepts in business terms
  • Pick up on subtle client concerns
  • Adjust communication style to client's pace

Real client testimonial (Australian construction SaaS company):

"The first time I hopped on a call with the Manila team, I forgot they weren't in Sydney. The accent is neutral, the idioms are Western, and they actually understand sarcasm—which sounds silly but matters in day-to-day team dynamics."

Written Communication: Slack, Email, Documentation

Daily Slack communication example:

Developer: "Hey @sarah, I noticed the CSV export is timing out
for datasets over 50k rows. I've implemented streaming export
with chunked responses—users can now download 500k+ rows without
timeouts. Want to review the PR before I merge?"

PM: "Nice catch! Does this affect memory usage on the server?"

Developer: "Good question. Memory stays flat because we're streaming
instead of loading everything into memory. I've tested with 1M rows—
no spikes. CPU usage increases about 15% during export but returns
to baseline immediately after."

This is business-fluent English. No grammatical errors, no awkward phrasing, and critically—proactive problem-solving explained clearly.

Technical Writing: Documentation

Filipino developers can write clear technical documentation without editing:

  • User guides that non-technical clients understand
  • API documentation with natural language examples
  • Architecture decision records (ADRs) explaining "why" not just "what"
  • Incident post-mortems that communicate to stakeholders

Example: API endpoint documentation written by Philippine developer:

## POST /api/v1/projects/{id}/tasks Creates a new task within the specified project. **Authentication:** Required (Bearer token) **Rate limit:** 100 requests per minute **Request body:** - `title` (string, required): Task name, max 200 characters - `description` (string, optional): Detailed task description - `assignee_id` (integer, optional): User ID to assign task to - `due_date` (ISO 8601, optional): Task deadline **Example request:** [...clear example...] **Error responses:** - `400 Bad Request`: Invalid task data (missing required fields) - `401 Unauthorized`: Invalid or missing authentication token - `403 Forbidden`: User lacks permission to create tasks in this project - `404 Not Found`: Project doesn't exist or user doesn't have access

No editing needed. Ready to publish.

The Communication Advantage in Practice

Time Zone + Language = Continuous Flow

Australian companies especially benefit:

Sydney to Manila:

  • Time difference: 2-3 hours (Manila is slightly behind)
  • Working hours overlap: 8 AM - 5 PM both locations
  • Perfect timezone alignment

Melbourne-based construction tech company workflow:

9 AM Melbourne: Morning stand-up with Manila team (11 AM Manila time)
10 AM - 5 PM: Continuous collaboration via Slack
5 PM Melbourne: Handoff for overnight work
6 PM - 2 AM Melbourne time: Manila team develops features
7 AM Melbourne: Code review ready for Australian team

The communication quality makes this work. If every message required clarification or re-explanation, the time zone advantage would evaporate.

US Companies: Evening = Morning

San Francisco to Manila:

  • Time difference: 16 hours (Manila is ahead)
  • 5 PM SF = 9 AM next day Manila
  • 24-hour development cycle possible

Real example (Chicago SaaS company):

"Our Chicago team pushes code at end of day (5 PM CST). Manila team picks it up at 8 AM their time (6 PM CST). They test, fix bugs, add features overnight. By our 8 AM, code review and QA fixes are waiting. We're shipping features in 24-hour cycles instead of 48-72 hours."

This only works because:

  1. Filipino team understands requirements without back-and-forth
  2. They communicate blockers/questions clearly via Slack/email
  3. Code comments and commit messages are clear

UK Companies: Slight Overlap + Excellent Async

London to Manila:

  • Time difference: 8 hours (Manila ahead)
  • Small overlap: 9 AM London = 5 PM Manila (last hour)
  • Requires strong async communication

How UK companies make it work:

  • Morning (UK): Record Loom videos explaining requirements
  • Evening (UK): Review Philippine team's work from their day
  • Slack threads: Detailed explanations, no language barriers
  • Documentation: Comprehensive because both sides write well

The "Hidden" Communication Cost Other Countries Have

India outsourcing reality:

We're not saying Indian developers can't communicate. Many speak excellent English. But:

  • Regional language dominance: 22 official languages, English is tertiary for most
  • Accent variability: Stronger regional accents can slow client calls
  • Business English fluency: Often excellent technical English, less natural business English

Result: More communication friction. More clarification cycles. More time spent decoding intent.

Eastern Europe:

  • Excellent technical skills
  • English proficiency varies widely (Poland high, Ukraine/Romania moderate)
  • Business English often requires practice
  • Cultural communication styles differ from Western direct communication

Latin America:

  • Growing tech hubs (Argentina, Brazil, Mexico)
  • Spanish/Portuguese primary languages
  • English fluency improving but not universal
  • Accent can be barrier for some US clients

The Philippines difference:

  • English is primary business language, not secondary
  • Western cultural alignment (US influence)
  • Neutral accent close to American English
  • Natural idiom usage (understands "let's circle back," "low-hanging fruit," etc.)

Real Client Experiences: What They Say

Australian Construction Firm (Melbourne)

Before: Worked with Eastern European developers

"Communication was our biggest pain point. They were technically strong, but every requirements call turned into 90 minutes instead of 30. We'd say 'let's build a dashboard for project managers,' and they'd implement something technically correct but not what we meant. Constant re-work."

After: Switched to Philippine team

"First sprint with the Manila team, they asked clarifying questions that showed they understood the business context, not just the technical spec. 'Are project managers using this on desktop or mobile? How often do they need real-time updates vs. daily summaries?' These are the questions our Australian developers would ask. The communication gap disappeared."

US Healthcare SaaS (Texas)

Why they chose Philippines over India:

"We interviewed teams in both countries. Technical skills were comparable. But in client demos, our customers need to feel comfortable. When our offshore team joins customer onboarding calls, they need to sound professional and clear. The Philippine team we hired sounds like they're calling from Austin. Our customers don't even ask where they're located."

UK Fintech Startup (London)

Async communication quality:

"Time zones mean we rarely talk live. Everything is Slack, Notion, and GitHub. The Manila team writes better documentation than some of our London devs. Their PR descriptions are mini-design documents. Their Slack updates are clear status reports. We don't lose productivity to async because the writing quality is there."

How to Assess English Proficiency When Hiring

Don't just take rankings at face value. Here's how to validate communication skills:

1. Technical Interview Conducted in English

What to assess:

  • Can they explain their code verbally?
  • Do they ask clarifying questions when requirements are vague?
  • Can they describe trade-offs in architectural decisions?
  • Do they understand your questions the first time?

Red flag: If they need questions repeated or translated to simpler English, communication will be a daily friction point.

2. Written Communication Test

Give a realistic scenario:

"A client reports that their CSV exports are timing out for large datasets. Write a Slack message to the client explaining the issue and your proposed solution."

What you're looking for:

  • Clear problem explanation (not overly technical for non-technical client)
  • Proposed solution with rationale
  • Timeline estimate
  • Professional tone
  • Grammar/spelling correctness

Philippine developers typically excel at this because they've been writing business English for years.

3. Code Review Comment Quality

Ask them to review a sample pull request and write comments.

Example evaluation:

Good (typical Philippine developer):

"The caching implementation looks solid, but I have a concern about
memory usage. If we cache all user sessions indefinitely, we'll hit
memory limits on larger deployments. Suggest adding TTL or implementing
LRU eviction. Happy to pair on this if you'd like."

Poor (communication barrier):

"Cache is memory problem. Need TTL fix."

4. Cultural Fit Questions

Ask about their experience working with Western teams:

  • "Tell me about a time you had to explain a complex technical issue to a non-technical stakeholder."
  • "How do you handle a situation where a client's requirements conflict with technical best practices?"
  • "Describe a project where you had to work async with a team in a different timezone."

Philippine developers often have BPO experience or have worked with US/Australian companies. They understand Western business culture and communication norms.

The Bottom Line: Communication Is a Competitive Advantage

Technical skills matter. But if you can't communicate clearly, you can't build software effectively.

The Philippines' 96% literacy rate, official English status, and $38.7 billion BPO industry aren't accidents. They're the result of decades of English-medium education and cultural immersion.

When you hire Filipino developers, you're not compromising on communication to save costs. You're getting:

Ranked 20th globally for English proficiency (vs. India's 60th) ✅ Natural business English from years of Western client work ✅ Clear written communication for async work ✅ Cultural alignment with US/UK/Australian business norms ✅ Zero translation delays in requirements, code reviews, client calls ✅ Time zone advantage (especially for Australia)

And you're still saving 60-70% vs. US/UK developer rates.


Ready to work with a Philippine development team? Our Manila-based developers average 6+ years working with Western companies. Fluent English, strong technical skills, and proven track record with Australian and US clients.

Schedule a consultation to meet the team →


Frequently Asked Questions

Q: Is the Philippine accent difficult to understand on calls?

Philippine English accent is close to American English (due to historical US influence). Most clients describe it as "neutral" and easier to understand than Indian or Eastern European accents. BPO industry success ($38.7B) is proof—companies hire Filipinos specifically for clear communication.

Q: How does Philippine English compare to Singapore or Malaysia?

Singapore ranks 3rd globally (635), Malaysia 27th (566), Philippines 20th (578). All three are excellent. Philippines has cost advantage: developers charge $25-35/hour vs. $60-80/hour in Singapore/Malaysia.

Q: Will I need to "simplify" my English when communicating?

No. Filipino developers work with Western companies daily. They understand business idioms ("circle back," "low-hanging fruit," "move the needle") and technical jargon naturally.

Q: What about written communication for documentation?

This is a strength. Filipino developers write clear technical documentation, user guides, and API docs without editing. English-medium education from elementary school onward means writing proficiency is high.

Q: Do Filipino developers understand Australian/British English differences?

Yes. The Philippines has strong ties to both US and Commonwealth countries. Developers working with Australian clients quickly adapt to "whilst," "programme," etc. It's not a barrier.

Q: How can I assess English proficiency during hiring?

Conduct technical interviews verbally, ask for written communication samples (Slack messages, documentation), and review code comment quality. Our article on hiring Filipino developers covers assessment frameworks.


About the author: Jomar Montuya is the founder of Medianeth, a Philippine software development agency. With 8+ years building software for US, UK, and Australian clients, he's worked with 50+ companies that chose the Philippines specifically for communication quality and technical expertise. His Manila-based team maintains 96%+ client satisfaction scores, with communication clarity cited as the top reason for renewals.

About Jomar Montuya

Founder & CEO

With 8+ years building software from the Philippines, Jomar has served 50+ US, Australian, and UK clients. He specializes in construction SaaS, enterprise automation, and helping Western companies build high-performing Philippine development teams.

Expertise:

Philippine Software DevelopmentConstruction TechEnterprise AutomationRemote Team BuildingNext.js & ReactFull-Stack Development

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