A Centralized Resource Management (CRM) system that supports the sharing of all the transponders in a WXC node, i.e., any spare transponder can be reconfigured to accommodate any drop channel, regardless of wavelength or input port. Consequently, network restoration in case of network failures is supported as well as the ability to reconfigure as a result of dynamic traffic requirements in the network. CRM advantageously is applied to conventional WXC node as well as WSS-based WXC nodes in the WDM networks. Three CTM schemes which manage the transponders in the WSS-based WXC node are described along with reconfiguration algorithms for an optical switchless CRM solution.