A new study from professional services firm KPMG reveals that companies would love to trim their expatriate employee programs. But can they afford to in today’s global economy?

KPMG’s 2007 Global Assignment Policies and Practices Survey found that of 348 human resources executives polled, 49 percent believe international assignment programs “take too much time and effort to administer,” up slightly from 48 percent last year. Forty percent of respondents thought their international assignment programs were “more generous than they need to be,” compared with 38 percent in 2006.

During a reporting trip to China a year ago, I heard discussions along these lines. Expat compensation packages—which traditionally have included “hardship pay” and typically cost at least twice that of an executive in America—have come under scrutiny as cities like Beijing and Shanghai become more cosmopolitan.

On the other hand, the services of expats in China are in high demand as companies from around the world expand operations in the booming country. A study by consulting firm Hewitt Associates released in December found that 55 percent of surveyed organizations plan to increase the number of expatriates they employ in China in 2008.

KPMG suggests globe-trotting generally is on the rise. “As more companies transition to a global approach and conduct more business in regions all over the world, international assignment programs need to change to fulfill the business needs required to move their workforce globally,” Ben Garfunkel, national partner in charge of KPMG’s international executive services practice, said in a statement.

Sure, making expat programs more efficient is a fine idea. But companies would do well to avoid cutting too close to the bone—and getting beat when it comes to global talent battles.