I have upgraded my alcatel One Touch pixi 4007x android 2.3.6 to 4.0 through a process which consumes time but working out well for me. And I think the process is applicable to your phone model too.
First you need to root your device even though it has got its on limitations, which I ignored but focused on having a higher version. To root you need a computer where you will install universal rooting software, for my case I used vroot English version. To root your device means having full control of it, you can simply install whatever you want even java apps. After rooting, then you need to check if the process was successful by installing root checker, this is an app which will tell you if your device has root access.
Finally you can now install custom ROM's of your choice. Otherwise kindly visit other information sources for more ideas.
You may try updating your phone with unofficial firmware. These are customs roms. However I will not recommend you doing it for it may break your phone. If you want to check the latest official firmware update for your phone, just follow the steps: 1. Activate data network so you can access the internet features of your phone. 2. Open settings of your phone. 3. Scroll down and look for "About phone" and tap to open. 4. You can see now the "Software update", tap it and tap update in the new screen that appeared. 5. Wait until prompted that update is available or no update available. You will be prompted that no update available if you have the latest official firmware.
Read more: How to upgrade android 2.6.3 into 4? - I want to upgrade android to play temple run and other exciting games :: Ask Me Fast at http://www.askmefast.com/How_to_upgrade_android_263_into_4-qna3305099.html