Tech firm Infosys has secured a massive Centrelink payments engine deal.

The Indian technology services and outsourcing behemoth Infosys knocked off competing bids from IBM and Accenture to secure the contract with Service Australia to transform the payments calculation engine for the eligibility of Centrelink recipients.

Minister for Government Services Stuart Robert revealed the deal in an address to the Australian Information Industry Association (AIIA).

The entitlements calculation engine (ECE) is part of the department’s billion-dollar Centrelink payments system overhaul.

The system performs the complex, high-risk task of deciding how much to pay to welfare recipients.

The new deal requires Infosys to deliver an “innovative” entitlements calculator engine solution built on “highly agile and configurable” Pegasystems platform.

“The project will enable Services Australia to more quickly implement policy changes for the benefit of Australians without disrupting services and deliver operational cost savings,” Infosys said.

Infosys says it demonstrated a “rigorous risk-mitigation strategy” during he bidding process.

The company will now create a proof of design, which it expects will be complete by mid-2020, followed by a second phase that will “encompass the build, implementation and support for the new ECE”, if approved.